Hester Biosciences received a demand notice from Assistant Commissioner, CGST Division Panchkula, Haryana for INR 3.25 million, Demand order under section 74(1) of CGST Act, 2017, for the period Fiscal Year 2017-18 to Fiscal Year 2020-21, demand of Input Tax Credit (ITC) amounting 3.25 million, levy of penalty of 3.25 million and interest as applicable, vide its order dated 19 January 2025. Short reversal of ITC under Rule 42/43 of CGST Rules, 2017 for aforesaid amount over the period of four years is objected by the GST department. The Company does not expect any material impact of the stated demand on financial, operations or other activities of the Company.
Based on Company's assessment, the aforesaid demand is not maintainable and the Company is evaluating all options including filing an appeal against the order.
