Heubach Colorants India Limited Receives Receipt of a Show Cause Notice Under Section 73(5) of the Tamil Nadu Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017

Heubach Colorants India Limited received the receipt of a Show Cause Notice under Section 73(5) of the Tamil Nadu Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017, pertaining to the year 2019-2020 for the state of Tamil Nadu. Details of the violation(s)/contravention(s) committed or alleged to be committed: Grounds of Show Cause are Turnover Differences, ITC Availed on Imports, RCM Applicability on Staff Welfare Expenses & Other Expenses Requirement of documents for zero rated supply, ITC Reversal on Trade Payables, Availment of Input Tax Credit on Capital Goods, ITC Reversal on Credit Notes received, all amounting to a demand for GST of INR 309,726,920 (CGST INR 123,965,697 + SGST INR 123,965,697 + IGST INR 61,795,526). There is no material impact on the financials, no impact on operations and/or other activities of the Company due to the Show Cause Notice.

The Company is in the process of evaluating the Show Cause Notice to take appropriate actions in due course with the Authority.