Sona BLW Faces ₹2.15 Cr GST ITC Reversal Demand & ₹21 Lakh Penalty

Sona BLW Precision Forgings Ltd has received an order from the Commissioner of GST & Central Excise, Chennai, demanding the reversal/recovery of Input Tax Credit (ITC) amounting to INR 2,15,03,832/- along with applicable interest. Additionally, a penalty of INR 21,05,192/- has been imposed under the CGST/TNGST Act 2017. The order, dated July 31, 2026, was received by the company on August 6, 2026. The alleged contravention pertains to the non-reversal of ITC claimed for excess GST charged by certain suppliers between April 2022 and March 2024. The company is evaluating the order and plans to pursue legal remedies, including an appeal. A preliminary assessment suggests no material adverse financial or operational impact.