SEDEMAC NSE filing

SEDEMAC Mechatronics Receives GST Show Cause Notices Totaling ₹2.35 Crore

The RealCase readMedium impact Neutral

SEDEMAC Mechatronics received GST Show Cause Notices for FY23 & FY24 totaling ₹2.35 Crore. The notices include ₹2.13 Crore in tax and ₹21.36 Lakhs in penalty. The company will file objections by June 9, 2026, and expects no material financial impact.

Why it matters

While the company expects no material financial impact, the total demand of ₹2.35 Crore is significant and could potentially affect operations or financial health if the objections are unsuccessful. This warrants a medium impact assessment.

The market read

The company received GST Show Cause Notices, which represent a potential financial liability. However, the company believes there will be no material financial impact and plans to contest the notices, indicating a neutral stance.

SEDEMAC Mechatronics Limited has disclosed the receipt of GST Show Cause Notices from the Commercial Taxes Department of Tamil Nadu, dated May 20, 2026.

The notices, received via email on May 20, 2026, pertain to the financial years 2022-23 and 2023-24. The total demand raised includes ₹2,13,60,504 in tax and ₹21,36,049 in penalty, aggregating to ₹2,34,96,553.

The allegations include short payment of tax under Reverse Charge Mechanism (RCM), reversal of output tax on credit notes, excess input tax credit availed, and penalty for violation of Rule 138. The company has engaged tax advisors and plans to file objections and representations, with a personal hearing scheduled on or before June 9, 2026.

SEDEMAC Mechatronics does not anticipate a material financial impact from these notices, based on their assessment and prevailing law.

Filing to action

What to do with a filing like this

SEDEMAC Mechatronics 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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Primary source

A plain-language summary of a public exchange filing by SEDEMAC Mechatronics Limited. Read the original for the full detail.

View original filing