Regaal Resources Faces ₹14.9 Crore Tax Recovery Notice; Provided ₹66.57 Million
Regaal Resources received a notice for recovery of ₹14.9 crore related to SGST reimbursement. The company expects to recover ₹104.64 million from distributors and has provided ₹66.57 million for pending subsidy until December 31, 2025.
The amount involved is substantial, and while the company plans to recover some of it from distributors and has made a provision, the litigation itself poses a risk.
The company has received a significant tax recovery notice, which indicates a potential financial liability and legal challenge.
Regaal Resources Limited has received a notice from the Office of the Joint Commissioner of State Tax, Kishanganj Circle, for the recovery of ₹14,90,02,928.69. The dispute pertains to the utilization of SGST reimbursement received under the Bihar Industrial Promotion Policy, 2016/2011, for sales made between April 2019 and December 2024.
According to the notice, certain distributors of the company allegedly made IGST payments on subsequent interstate sales by utilizing SGST credits claimed by Regaal Resources. This action is stated to be inconsistent with Resolution No. 108 dated January 20, 2020, issued by the Department of Industries.
The company is currently examining the notice and plans to take appropriate legal actions, including filing replies and appeals. Based on current assessments, Regaal Resources expects to recover ₹104.64 million from the concerned distributors due to breaches in their agreements regarding the utilization of SGST credits. Additionally, an amount of ₹66.57 million, representing pending subsidy until December 31, 2025, has been provided for as an exceptional item in the financial results for the quarter ended December 31, 2025.
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Regaal Resources Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. 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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