Sundrop Brands Receives GST Show Cause Notice of Rs. 26.37 Crore, Company Expects No Business Impact:

Sundrop Brands Limited (previously known as Agro Tech Foods Limited) has received a Show Cause Notice (SCN) passed by the Deputy Commissioner (SGST), Sector-7, Ghaziabad I, Uttar Pradesh, under Section 73 of the UPGST/CGST Act, 2017.

The company had received the notice on September 29, 2026, at 16:34 hours, in relation to the scrutiny of GST returns pertaining to the Financial Year 2022-23.

The show cause notice has proposed a GST demand amounting to Rs 26,37,65,281.41, inclusive of a penalty of INR 2,39,78,661.93. Currently, the company does not expect any impact of the present action on its financial, operational, and other activities.

The company is in the process of furnishing a proper reply to the notice. According to the information disclosed by the company vide an Intimation dated September 30, 2026, under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, "demands and the allegations contained therein on the grounds that the stated authority has not considered the GST liability already discharged by the Company on deemed supplies, export under Letter of Undertaking (LUT), and Reverse Charge."

Refer to the official intimation for complete information.