Macpower CNC Machines Limited announced that the company has received an order from Assistant Commissioner of CGST, Division-II, Rajkot raising a demand for payment of GST along with interest and penalty by alleging irregular availment & utilization of Input Tax Credit on various services like Merchant Banking & legal service availed & utilized in relation to Initial Public Offer (IPO) during the period from January 2018 to March 2018. Further note that there is no clarity on non-availability of ITC on IPO related Expense in GST Act and this type of notice commonly sent to many company who came with IPO since July 2017. The company intends to file an appeal against the Order before the Appellate Authorities within the prescribed timelines.

Nature and details of the action(s) taken, initiated or order(s) passed: Order passed under Section 74(1) of the CGST Act, 2017 read with Section 74(1) of the GGST Act, 2017 and Section 20 of the IGST Act, 2017 raising a demand on the company for payment. Date of receipt of direction or order, including any interim or interim orders, or any other communication from the authority: 18 April 2024. Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: The demand raised is for payment of an amount of INR 2,835,286 towards Goods and Services Tax, a penalty of INR 2,835,286 and interest as applicable.

The company intends to file an appeal against the order before the Appellate Authorities within the prescribed timelines.