SONA BLW Precision Forgings Limited has received an order from the Commissioner of GST & Central Excise, Chennai, demanding the reversal/recovery of Input Tax Credit (ITC) amounting to INR 2,15,03,832. An additional penalty of INR 21,05,192 has also been imposed under the CGST/TNGST Act 2017. The company is currently evaluating the order and considering legal remedies, including an appeal, with a preliminary assessment indicating no material adverse financial or operational impact.
Tax Demand Order Received by Sona Comstar
SONA BLW Precision Forgings Limited has disclosed the receipt of an order from the Office of the Commissioner of GST & Central Excise, Chennai. The order, dated July 31, 2026, was received by the company on August 6, 2026, at 8:25 p.m. (IST). It mandates the reversal and recovery of Input Tax Credit (ITC) totaling INR 2,15,03,832. Furthermore, a penalty of INR 21,05,192 has been imposed, referencing Section 73(9) and Section 122(2)(a) of the Central Goods and Services Tax (CGST)/TNGST Act 2017.
Details of the Order
The authority issuing the order is the Joint Commissioner of Central Tax. The core of the demand pertains to the alleged 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.
Company’s Response and Outlook
The Company is currently evaluating the implications of this order. Sona Comstar is considering availing appropriate legal remedies, which may include filing an appeal. Based on their preliminary assessment, the company does not anticipate any material adverse financial, operational, or other impact from this order.
Source: BSE
