Pokarna Limited Receives GST Show Cause Notice for ₹2.35 Crore Demand
Pokarna Limited received a GST show cause notice proposing a demand of ₹2.35 crore plus interest and penalty. The notice alleges short-payment of GST related to supplies made to merchant exporters and short declaration of black granite block quantities for FY 2020-21 and FY 2021-22. The company plans to contest the demand, with no immediate financial impact.
While the company states there is no immediate financial impact, the proposed demand of over ₹2.35 crore plus penalties and interest represents a material contingent liability that could affect future financials if not successfully contested.
The company has received a show cause notice from tax authorities proposing a significant demand for GST, interest, and penalties, which introduces financial uncertainty and potential liability.
Pokarna Limited has announced that it has received a show cause notice from the Officer of the Commissioner of Central Tax, Government of India. The notice, bearing O.R. No. 44/2026-GST and reference GEXCOM/ADJN/GST/ADC/733/2026-Adjn, was issued under Section 74 of the Central Goods and Services Tax Act, 2017, and corresponding provisions of the Andhra Pradesh Goods and Services Tax Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017.
The SCN proposes a demand of GST aggregating to ₹2,35,45,724, along with applicable interest and penalty. The alleged violations include short-payment of GST of ₹16,41,145 due to alleged non-fulfillment of conditions for supplies made to merchant exporters at a concessional rate, and short-payment of GST of ₹2,19,04,579 due to alleged short declaration of the quantity of black granite blocks dispatched during FY 2020-21 and FY 2021-22.
The notice proposes a total demand of ₹4,70,91,448, comprising the GST demand of ₹2,35,45,724 and an equivalent penalty of ₹2,35,45,724, besides applicable interest. The company has stated that these are proposed demands and not final liabilities. Pokarna Limited, based on the advice of its legal advisors, is examining the allegations and intends to contest the proposed demand by submitting a detailed response within the prescribed timeline.
As a result, the company has stated that there is no immediate impact on its financials, operations, or other activities at this stage, as the final financial implication will depend on the outcome of the adjudication proceedings. The company received this communication on 21st August, 2026.
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Pokarna Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. 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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