Carraro India Receives Show Cause Notice from GST Department

Carraro India Limited, the manufacturer and supplier of driveline systems, has informed the stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) that the company has received a Show Cause Notice from the Central Goods and Services Tax (CGST) department on June 27, 2025. The show cause notice is related to FY 2018-19 and is worth Rs 35,35,866, including tax demand of Rs 17,67,933 and penalty of an equal amount.

This disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

A Show Cause Notice is a formal notice issued by government authorities asking why action should not be taken against a company or individual for their suspected violation.

The GST department claims that the said show cause notice is issued because Carraro India generated several E-Way bills for the same invoice during FY 2018-19. Additionally, the company did not even report this in their GST Returns for that period.

The company said that it expects to receive relief from the authorities and is preparing for a detailed response to the tax authority within 30 days. It also said that the above show cause notice will not affect the operations or other activities of the Company.