On February 27, 2025, TTK Prestige Limited, a well-known company in the Indian kitchen appliances sector, received a GST demand notice from the Haryana Excise and Taxation Department, which could have a significant impact on the company’s financial statements. This notice, identified under Demand No. ZD060225038147L, was sent via email and relates to a GST audit conducted for the financial year 2020-21. According to the department’s findings, there were audit observations related to excess input tax credit (ITC) claims, issues concerning credit notes, reverse charge mechanism (RCM) liability, and discrepancies in credit notes received from suppliers, leading to a demand for additional tax, interest, and penalty.

The total demand made by the Haryana authorities amounts to Rs. 10,00,48,696/-, broken down as follows:

• Tax demand: Rs. 5,36,78,257/-
• Interest: Rs. 4,09,52,620/-
• Penalty: Rs. 54,17,819/-

Despite the serious nature of the demand, TTK Prestige has taken a firm stance on the issue. The company asserts that the Excise and Taxation Department has erred in their decision by not considering the material facts submitted by the company. As a result, the company has already planned to appeal the order with the appropriate authority. The due date for filing the appeal is May 27, 2025, and TTK Prestige is confident that it will receive a favorable ruling from the appellate authority.

This appeal will be critical in determining the financial implications for TTK Prestige. The company believes that the demand and the potential penalties may not have a significant impact on its financial statements, as it is optimistic about the outcome of the appeal.

In compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, TTK Prestige has disclosed this development to the National Stock Exchange (NSE) and BSE Limited, informing them of the communication received from the tax department. The company has followed the disclosure requirements meticulously, ensuring that all relevant information is provided in the Form A format, as mandated by SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25.

The detailed report also emphasizes that there have been no significant aberrations or non-compliances identified by the authority in the communication. There are no penalties or restrictions imposed by the tax department, although the company remains focused on resolving the issue through the legal and regulatory channels available.

For now, TTK Prestige remains confident that the matter will be resolved in its favor, and as a result, the company’s stock market performance and overall financial stability may not be significantly affected. The company’s management continues to focus on regular operations and ensuring compliance with all legal and regulatory requirements while addressing this challenge.

In conclusion, while the GST demand of Rs. 10 crore is a significant sum, TTK Prestige’s confidence in the appeal process suggests that there may be no major financial setbacks. As the company moves forward with its appeal, investors and stakeholders are advised to stay updated with future disclosures, which will offer insights into how this matter progresses.

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