Neogen Chemicals Receives ₹6.97 Crore Tax Demand Notice

Neogen Chemicals Limited announced on September 6, 2026, that it has received a show cause cum demand notice dated August 24, 2026, from the Office of the Commissioner CGST and Central Excise Commissionerate, Belapur. The notice, received on September 5, 2026, pertains to the financial year 2022-23 and levies a consolidated tax demand of ₹6,97,08,028/-, including applicable interest and penalty. This demand is pursuant to Section 73 of the CGST Act, 2017 and MGST Act, 2017, read with Section 20 of the IGST Act, 2017.

The grounds for the notice include GSTR-1 vs. GSTR-3B tax mismatch, excess Input Tax Credit (ITC) on the import of goods, and unsubstantiated SEZ/Import claims. The company has noted that a principal tax amount of ₹1,38,95,418/- was already paid via DRC-03 on December 28, 2022, and this amount will be appropriated towards the tax liability, with interest and penalty demanded thereon.

Neogen Chemicals stated that it is evaluating the notice and will file a detailed reply with the adjudicating authority within the prescribed timelines. The company intends to pursue all available legal remedies. It has also clarified that there is no material impact on its financial, operational, or other activities, except for the amount mentioned in the notice.