Godavari Biorefineries Receives Rs 18.12 Crore GST Show Cause Notice Over Short Payment and Ineligible ITC:

Godavari Biorefineries Limited, on August 28, 2026, has received a show cause notice (SCN) through email at 5:43 PM from the Office of the Commercial Tax Officer (Enforcement), DGSTO, Jamkhandi, Karnataka, for short payment/non-payment/availment and utilisation of ineligible input tax credit (ITC) for the tax period 2022-23.

The notice has been issued under sub-section (1) of Section 73 of the CGST/KGST Act, 2017, r/w rule 142(1)(a) of the CGST/KGST Rules, 2017, for the purpose of collecting the unpaid tax, proposing an aggregate GST demand of about Rs 10.57 crore, comprising Rs 5.13 crore IGST, Rs 2.69 crore CGST, Rs 2.69 crore SGST, and Rs 6.49 lakh cess, along with interest of 6.50 crore interest under section 50 of the Act, and a penalty amount of Rs 1.05 crore.

In addition to the tax demand, the notice includes applicable interest of approximately Rs 6.50 crore under Section 50 of the GST law and a penalty of around Rs 1.06 crore. Thus, the overall amount covered by the notice is approximately Rs 18.12 crore, including tax, interest, and penalty.

Godavari Biorefineries said it is currently reviewing the notice and assessing its potential financial and operational impact. The company also said it will take appropriate legal steps, including submitting a reply or filing an appeal, as advised.

The company has clarified that the matter is presently at the Show Cause Notice stage and that its final impact will be evaluated after examining the allegations and relevant records.

Godavari Biorefineries Limited has made the aforementioned disclosure to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE), vide an Intimation dated August 29, 2026, in pursuance of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.