Sundrop Brands Receives GST Show Cause Notice for ₹26.38 Crore Demand
Sundrop Brands received a GST show cause notice from Uttar Pradesh SGST demanding ₹26.38 crore, including a ₹2.40 crore penalty, for FY 2022-23. The company is preparing a reply contesting the demand, citing already discharged liabilities.
The demand of ₹26.38 crore is substantial. While the company is contesting it and does not foresee immediate implications, the potential for future financial impact or penalties warrants a medium impact assessment.
The company has received a show cause notice with a significant demand, which is a negative development. However, the company is contesting the notice and does not currently foresee any financial implications, which balances the sentiment.
Sundrop Brands Limited (formerly Agro Tech Foods Limited) has announced the receipt of a show cause notice (SCN) from the Deputy Commissioner (SGST), Sector-7, Ghaziabad I, Uttar Pradesh. The notice, bearing reference number ZD090926462434W, was issued under Section 73 of the UPGST/CGST Act, 2017, on September 29, 2026.
The SCN pertains to the scrutiny of GST returns for the Financial Year 2022-23 and raises a GST demand of ₹26,37,65,281.41, which includes a penalty of ₹2,39,78,661.93. The company is preparing a reply to the notice, asserting that the authority has not considered GST liability already discharged for deemed supplies, exports under Letter of Undertaking (LUT), and Reverse Charge Mechanism for the said financial year.
Sundrop Brands Limited intends to file explicit submissions with documentary evidence within the prescribed timeline to contest the allegations and the demand. The company currently does not foresee any immediate financial, operational, or other implications arising from this notice.
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Sundrop Brands 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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