Syncom Formulations Receives Demand Notice of ₹1.41 Crore for Ineligible ITC and Penalty
Syncom Formulations received a revised demand and penalty notice from the GST Department for ₹1.41 crore. This includes ₹70.89 lakh as ineligible Input Tax Credit and ₹70.89 lakh as penalty, totaling ₹1.41 crore. The company intends to appeal this demand.
The demand of ₹1.41 crore is a significant amount for the company, potentially impacting its financials and operations, although the company plans to appeal.
The company has received a demand notice for ineligible Input Tax Credit and penalty, which represents a financial liability and a negative development.
Syncom Formulations (India) Limited has announced in continuation of its earlier letter dated 5th April, 2025, that the GST Department has raised a penalty and demand under sections 74(5) and 122 of the CGST Act, 2017. The company received a revised demand and penalty notice dated 31st December, 2025, on 2nd January, 2026. The total amount demanded is ₹1,41,78,604, which includes ₹70,89,302 as ineligible Input Tax Credit (ITC) and an equal amount as penalty. The company had previously applied for an appeal, but it was not accepted. Syncom Formulations is committed to ensuring optimal compliance with all applicable laws and will further pursue an appeal before the relevant appellate authority. The alleged violation pertains to the ITC availed by the company on ineligible input services or blocked credits. The company is seeking necessary advice and proposes to contest the demand and penalty.
What to do with a filing like this
Syncom Formulations (India) 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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See the model portfoliosA plain-language summary of a public exchange filing by Syncom Formulations (India) Limited. Read the original for the full detail.