Tax & Penalty29 Apr 2026, 02:31 pm
Ponni Sugars receives ₹93.47 Cr GST demand-cum-show cause notice
AI Summary
Ponni Sugars (Erode) Ltd has received a demand-cum-show cause notice from the Additional Commissioner of GST and Central Excise, Coimbatore, dated April 28, 2026. The notice alleges contraventions of CGST Act, 2017/TNGST Act, 2017, specifically regarding the wrongful availing of Input Tax Credit on its Co-Generation Power Plant and other services, and non-payment of GST on certain services. The authority has demanded ₹93.47 crore along with applicable interest and penalty. The company, however, views these demands as not legally tenable and intends to provide an appropriate reply and pursue legal recourse. Despite the demand, the company anticipates no material financial impact.
Key Highlights
- Ponni Sugars received a GST demand-cum-show cause notice.
- Notice alleges ₹93.47 Cr in wrongful ITC and unpaid GST.
- Company disputes the demand, plans to take legal recourse.
- No material financial impact is expected by the company.