Nesco Limited received a Pre-Show Cause Notice intimation (PSCN) from Commissionerate of Taxes Government of Gujarat, India Assistant Commissioner of State Tax for payment of GST of INR 2.650 million, Interest of INR 2.170 million and penalty of INR 265,000 aggregating to INR 5.085 million under applicable provisions of the SGST/CGST/IGST Act, 2017. The Company has not received a copy of the PSCN from the GST Authority through any mode of communication till date. The letter came to attention only on 1st May 2024 through GST consultants.
Details of the violation(s)/contravention(s) committed or alleged to be committed: The said PSCN mentions that the company has not correctly availed input tax on its inward supplies for the financial year 2019-2020. Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: As per details given above in point no. 1, the PSCN has no material impact on the financial, operation and other activities.
Based on the advice of tax consultants, the said letter is based on erroneous calculation by the GST authorities. The Company will be filing appropriate responses to the said letter within the prescribed timelines.
