Greenlam subsidiary receives GST Show Cause Notice for ₹7.73 Crore ITC reversal
Greenlam's subsidiary received a GST Show Cause Notice for ₹7.73 Crore regarding reversal of input tax credit for FY23. The notice requires payment or objection within 30 days. The company is reviewing legal options and expects no material financial impact.
The potential financial impact is quantified at ₹7.73 Crore, which is a significant amount. While the company expects no material impact, the initial receipt of the notice warrants a medium impact assessment pending further resolution.
The company has received a Show Cause Notice, which indicates a potential financial liability. However, the company is reviewing the notice and expects a favorable outcome with no material impact, hence the neutral sentiment.
Greenlam Industries Limited has received a Show Cause Notice (SCN) from the Assistant Commissioner (ST), Government of Andhra Pradesh, concerning its wholly-owned subsidiary. The notice, issued under Form GST DRC-01 with reference ZD370926057919G dated 29.09.2026, pertains to the alleged ineligibility of input tax credit (ITC) amounting to ₹7,73,49,835 for the Financial Year 2022-23, as per Section 17 of the CGST/APGST Act 2017.
The subsidiary is required to pay the alleged ineligible ITC along with applicable interest and penalty, or raise an objection within 30 days of receiving the notice dated September 29, 2026.
Greenlam Industries Limited is currently reviewing the SCNs and evaluating appropriate legal recourse. The company expressed optimism for a favorable outcome and stated that it does not anticipate any material impact on its financials or operations.
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Greenlam Industries Limited filed this with the NSE as a statutory disclosure, categorised under regulatory impact. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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