Neogen Chemicals Receives ₹6.97 Cr Tax Demand Notice

Neogen Chemicals Ltd has received a show cause cum demand notice from the Office of the Commissioner CGST and Central Excise Commissionerate, Belapur, for the financial year 2022-23. The notice levies a consolidated tax demand of Rs. 6,97,08,028/-, including applicable interest and penalty, pursuant to sections of the CGST, MGST, and IGST Acts. The demand arises from alleged discrepancies including GSTR-1 vs. GSTR-3B tax mismatch, excess Input Tax Credit (ITC) on imports, and unsubstantiated SEZ/Import claims. The company has paid a principal tax amount of Rs. 1,38,95,418/- via DRC-03 earlier, which is being appropriated towards the liability. Neogen Chemicals is evaluating the notice and will file a detailed reply within the prescribed timelines, pursuing all available legal remedies. The company states there is no material impact on its financial or operational activities beyond the amount demanded.