Bannari Amman Sugars receives GST Show Cause Notice for ₹5.19 Cr

Bannari Amman Sugars Ltd has received a Show Cause Notice dated November 13, 2026, from the Assistant Commissioner of Commercial Taxes (Audit)-1, Mysore, Government of Karnataka. The notice pertains to the fiscal year 2022-23 (April 2022 to March 2023) and alleges an excess claim of ineligible Input Tax Credit (ITC) under Section 17(5) of the GST Act. The proposed tax amount is ₹3,00,20,254, with proposed interest of ₹1,89,12,760 and penalty of ₹30,02,025, totaling ₹5,19,35,039. The company is examining the notice and intends to submit a reply within the prescribed time, contesting the proposed amounts. Bannari Amman Sugars does not anticipate any material impact on its operations.