Star Paper Mills to Challenge Rs 1.55 Crore GST Demand Order Over Disallowance of Input Tax Credit on Raw Materials Destroyed in Fire:

Star Paper Mills Ltd has received a GST order demanding a total of around Rs 1.55 crore for the financial year 2023-24. The order, dated October 16, 2026, was received by the company on October 21, 2026, from the Joint Commissioner of the GST Department in Muzaffarnagar, Uttar Pradesh.

The major demand amounts to Rs 1.53 crore, including tax, interest and penalty, over the department’s decision to disallow input tax credit claimed on raw materials destroyed in a fire accident at the company’s mill. The company has also received a separate demand of Rs 1.58 lakh, including tax, interest and penalty, relating to GST on paper consumed internally and miscellaneous receipts.

Star Paper Mills said it will challenge the order by filing appeals before the Additional Commissioner (Appeals) within the prescribed time limit. The company also stated that the order is not expected to have any material impact on its financial position, operations or other activities.