Lakshmi Electrical Receives GST Show Cause Notices Totaling ₹5.5 Cr
Lakshmi Electrical Control Systems Limited has received two show cause notices from the GST authorities for the financial years 2022-2023 and 2023-2024. The total demand amounts to ₹5,49,81,959, comprising ₹4,98,61,440 in tax, ₹2,922 in cess, ₹1,11,452 in interest, and ₹15,06,145 in penalties. The notices relate to issues such as short payment of tax under the Reverse Charge Mechanism (RCM), ITC reversals, and discrepancies in reported turnover. The company stated that these notices were inadvertently delivered to their spam folder and were only recently retrieved. Management has confirmed that there is no material impact on the company's financials, operations, or activities, and they are currently in the process of preparing and filing their formal replies to the authorities.
Key Highlights
- Company received GST show cause notices for FY23 and FY24 totaling ₹5.5 crore.
- Demands include tax, interest, and penalties related to RCM, ITC, and turnover discrepancies.
- Management asserts there is no material impact on the company's operations or financial health.
- The company is currently preparing formal responses to address the GST authorities' claims.
Price Impact
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