Sona BLW fined ₹2.15 Crore for GST ITC Reversal, Penalty ₹21 Lakh
Sona BLW Precision Forgings Limited received an order from GST authorities demanding ₹2.15 Crore for ITC reversal and imposing a ₹21 Lakh penalty. The company is evaluating the order and plans to appeal, with no immediate material adverse impact expected.
While the company is evaluating legal remedies and expects no material adverse impact based on preliminary assessment, the order involves a substantial financial demand and penalty, warranting a medium impact assessment.
The company has been issued an order demanding a significant amount for the reversal of Input Tax Credit and has also been penalized, which is a negative development.
Sona BLW Precision Forgings Limited has received an order from the Office of the Commissioner of GST & Central Excise, Chennai, demanding the reversal/recovery of Input Tax Credit (ITC) amounting to ₹2,15,03,832, along with applicable interest. Additionally, a penalty of ₹21,05,192 has been imposed under the Central Goods and Services Tax (CGST)/TNGST Act 2017.
The order, dated July 31, 2026, was received by the company on August 6, 2026. The alleged contravention pertains to the non-reversal of Input Tax Credit claimed in respect of excess GST charged by certain suppliers during the period from April 2022 to March 2024.
The company is currently evaluating the order and plans to pursue appropriate legal remedies, including filing an appeal. Based on a preliminary assessment, Sona BLW does not expect any material adverse financial, operational, or other impact from this order.
What to do with a filing like this
Sona BLW Precision Forgings Limited filed this with the NSE as a statutory disclosure, categorised under regulatory impact. 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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See the model portfoliosA plain-language summary of a public exchange filing by Sona BLW Precision Forgings Limited. Read the original for the full detail.