Shree Renuka Sugars gets Rs.20 lakh Penalty under GST on ITC matter

Shree Renuka Sugars Limited has been fined Rs.20,52,130 under the Goods and Services Tax regulations for wrongly claiming and in excess utilizing Input Tax Credit.

An order issued under the relevant sections of the GGST Act, 2017, read with the CGST Act, 2017, read with the IGST Act, 2017, and the SGST Act, 2017, and the Rules established thereunder, imposing a penalty of Rs.20, 52,130.

The Adjudicating Authority proposed a penalty based on a GST audit under applicable provisions of the Act, and the penalty was confirmed under Section 74 of the CGST Act, 2017.

The penalty was imposed on the following grounds:

1. Wrongly availed Input Tax Credit in violation of Section 16(2) of the GGST Act 2017;

2. Excess ITC obtained and used in violation of Section 16(2) of the GGST Act, 2017.

The company intends to file an appeal against the aforementioned order. “There is no significant impact on the Company’s finances,” Shree Renuka Sugars stated in an exchange filing.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The order was received by the company on December 4, 2024.