Thirumalai Chemicals Receives Show Cause Notice for ₹13.52 Lakhs Tax Discrepancy

Thirumalai Chemicals Ltd has received a show cause notice from the Office of Assistant Commissioner, Ranipet, under Section 73 of the CGST Act, 2017. The notice pertains to alleged discrepancies in exempted turnover, excess claim of Input Tax Credit (ITC), and short payment of tax for the Assessment Year 2022-2023. The total potential demand, including tax, interest, and penalty, amounts to ₹13.52 lakhs (₹7.37 lakhs tax, ₹5.31 lakhs interest, ₹0.84 lakhs penalty). The company believes the demands are erroneous as they relate to SEZ unit transactions where GST is not applicable. Thirumalai Chemicals will submit its response within the prescribed timelines and expects the financial implication, if any, to be insignificant and not materially impact its financial position.