EPL Limited has received a communication from the Office of the Assistant Commissioner, Central Goods and Services Tax - Guwahati Audit Circle - III, regarding imposition of a penalty of INR 2,490,783. Date of receipt of communication from the authority: July 3, 2024. Details of the violation: The Authority has, vide the Audit Report issued under Section 65(6) of the Central Goods and Services Tax Act, 2017 ("CGST Act"), alleged that in terms of the provisions of Section 74 of the CGST Act, a penalty of 100% of the amount of INR 2,490,783 is leviable on the wrongly availed Input Tax Credit (ITC) of an equivalent amount.

However, it is pertinent to note that the Company had suo-moto reversed the Input Tax Credit (ITC) of the amount of INR 2,490,783, before the issuance of the Audit Report.