Neogen Chemicals Receives Show Cause Notice for ₹6.97 Crore Tax Demand

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 (approximately 7 crore), which includes applicable interest and penalty, under the CGST Act, 2017, MGST Act, 2017, and IGST Act, 2017.

The grounds for the notice include tax mismatch in GSTR-1 vs. GSTR-3B, excess Input Tax Credit (ITC) on the import of goods without valid Bills of Entry for FY 2022-23, and unsubstantiated SEZ/Import claims for excess ITC.

The company has stated that a principal tax amount of ₹1,38,95,418 was already paid via DRC-03 on December 28, 2022, and the current demand pertains to interest and penalty on this amount. Neogen Chemicals is currently evaluating the notice and will file a detailed reply within the prescribed timelines, pursuing all available legal remedies. The company believes there will be no material impact on its financial, operational, or other activities beyond the amount mentioned in the notice.