Storage Technologies and Automation Limited has received an order of adjudication from the Goods and Services Tax (GST) department of Karnataka for the financial year from April 2020 to March 2021. This communication, issued on February 14, 2025, outlines the penalty of Rs. 20,000 imposed under the provisions of the Central Goods and Services Tax Act, 2017 (CGST Act) and the Karnataka Goods and Services Tax Act, 2017 (KGST Act). The penalty is a result of a misclassification of intra-state supply of services as inter-state supply, which led to the misreporting of tax liabilities.

Key Highlights of the GST Penalty Order:

• The penalty, amounting to Rs. 20,000, was levied in relation to the tax period of April 2020 to March 2021.

• The order followed the issuance of a Show Cause Notice (SCN) on November 29, 2024, leading to the adjudication order issued by the Assistant Commissioner of Commercial Taxes, Karnataka.

• The company’s non-compliance pertained to the misclassification of the supply of services, affecting the correct tax determination and payment for the specified period.

• The penalty, under Section 73 of the KGST Act, 2017, has been calculated based on this misclassification.

Despite the penalty, Storage Technologies and Automation Limited does not foresee any significant impact on its financial or operational activities. The penalty amount is relatively small in the context of the company's broader financial performance. The company has voluntarily complied with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by filing the required information, given that the penalty is below Rs. 1,00,000.

The company has disclosed this information in its filing, as required by Regulation 30 of the SEBI Listing Regulations. Moreover, the company has also complied with Regulation 46, making this information available on its official website.

The company’s management remains focused on ensuring compliance with all relevant tax regulations, and the penalty is not expected to disrupt its operations in any material way.

For further details, the company has provided all the required information in the annexure, available on the company's official website.

The adjudication order serves as a reminder for companies to carefully adhere to tax classifications and to ensure that all reporting is accurate in order to avoid similar issues in the future.

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