Health and hygiene product maker Eureka Forbes Ltd on Monday said it has received a show cause notice proposing a ₹273.40 crore demand from the Uttar Pradesh Goods and Services Tax authority for the financial year 2022-23. The notice, issued under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017, alleges a tax liability of ₹149.21 crore, along with ₹109.27 crore in interest and ₹14.92 crore in penalty.
The show cause notice was issued by the Deputy Commissioner, State Tax, Sector-1, Lucknow, Uttar Pradesh, in Form GST DRC-01. According to the company, the proposed demand appears to have been computed, among other things, using pan-India financial information from the signed financial statements for FY2022-23, without establishing the corresponding transaction-level liability attributable to the company's Uttar Pradesh GST registration.
The company intends to contest the notice comprehensively within the prescribed timelines. The company said it does not envisage any material impact on its financials, operations or other activities arising from the show cause notice. The notice was received after office hours on Friday, September 25, and the company made the disclosure on Monday, September 28, being the first working day following its receipt.
Shares of Eureka Forbes Ltd ended at ₹361.90, down by ₹8.65, or 2.33%, on the BSE.