Welspun Subsidiary Receives GST Show Cause Notices Totaling ₹179.87 Crore
Welspun Enterprises subsidiary, WSNRPL, received six GST Show Cause Notices from Tamil Nadu authorities. The notices allege differences in reported turnovers and excess ITC availment, proposing a total tax demand of ₹179.87 crore with interest and penalty. WSNRPL plans to contest the notices, expecting no material financial impact.
While the company states no material impact is expected, the potential tax demand of approximately ₹179.87 crore, along with interest and penalty, warrants a medium impact assessment due to the significant monetary value involved.
The company believes it has a strong case and does not foresee any material impact, indicating a neutral stance despite the potential financial implications.
Welspun Enterprises Limited (WEL) announced that its subsidiary, Welspun Sattanathapuram Nagapattinam Road Private Limited (WSNRPL), has received six Show Cause Notices (SCNs) from the Tamil Nadu State Goods and Service Tax Authority. These notices, dated May 20, 2026, were received by WSNRPL on May 21, 2026.
The SCNs, issued under Section 74 of the CGST Act, 2017, pertain to alleged differences between the turnovers reported by WSNRPL in Form GSTR-3B and those reported by the client in Form GSTR-7 (statement of GST TDS deduction). Additionally, they cite alleged excess availment of Input Tax Credit (ITC).
The company clarified that the alleged difference arises because the client deducted and reported GST TDS for the complete project in Tamil Nadu, without accounting for the project falling in two states: Tamil Nadu and the Union Territory of Puducherry. Consequently, GST TDS should have been deducted and reported separately for each state. The company noted that a similar issue was previously addressed in an earlier show cause notice where the demand was dropped.
WSNRPL believes it has a strong case on merits, asserting that tax has been rightly discharged on services provided in Tamil Nadu. The subsidiary will file a detailed reply to the SCNs. The company does not anticipate any material impact on its financial, operational, or other activities due to these notices.
The notices cover periods from FY 2020-21 to FY 2025-26, proposing a total tax demand of ₹179,87,33,835, along with applicable interest and a penalty of the same amount.
What to do with a filing like this
Welspun Enterprises 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 Welspun Enterprises Limited. Read the original for the full detail.