GST Jolt: Sterling Tools Under Scanner for Rs. 9.93 Crore

Sterling Tools Ltd received a Show Cause Notice from the Additional Commissioner CGST, Audit Commissionerate, Dehradun, on 25th June 2025, which involves:

• Alleged short payment of GST due to the classification adopted on supply of goods.
• Interest liability on GST paid on supplementary invoices issued on account of price variation.
• Alleged excess availment IGST Input Tax Credit as compared to the figures reflected in GSTR-2B.

The SCN includes a proposed demand of GST amounting to:

GST short payment: Rs 9,77,76,311
Interest on supplementary invoices: Rs 15,69,706
Excess ITC availment: Rs 18,625
Total: Rs 9,93,64,642

The company made disclosure of the matter in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 , to the National Stock Exchange of India and BSE on 26th June, 2025.

Sterling stated that it will take the necessary steps in response to the said notice within the prescribed timeframe. The company also informed NSE and BSE that it will be taking required actions to defend itself before the relevant authorities and address the demand.

It also informed that there has been no material financial impact on the company till now.