What is the total GST demand issued to Bansal Wire Industries?

Bansal Wire Industries received a show-cause notice demanding ₹202.77 crore for tax, interest, and penalty.

Why did Uttar Pradesh's SGST issue a notice to Bansal Wire?

The notice relates to issues concerning e-way bills, input tax credit, and non-payment of tax on RODTEP licenses for FY2020-21.

Will the ₹202 crore GST notice affect Bansal Wire's financials?

Bansal Wire Industries stated that there is no material impact on its financials, operations, or other activities from the notice.

Home / Business and Economy / Bansal Wire Faces ₹202 Crore GST Demand

Bansal Wire Faces ₹202 Crore GST Demand

2 Dec

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Summary

Bansal Wire received a GST notice for ₹202.77 crore.
The notice includes tax, interest, and penalty claims.
The company believes the claims are untenable and will respond.

Bansal Wire Industries has been served a substantial show-cause notice from the Joint Commissioner, SGST, in Uttar Pradesh. The notice demands a total of ₹202.77 crore, broken down into ₹69.19 crore for tax, ₹64.39 crore for interest, and ₹69.19 crore as penalty. These charges pertain to the financial year 2020-21 and involve issues such as e-way bills, input tax credit, and RODTEP license non-payment.

The company firmly contests the validity of these claims, viewing the notice as untenable and without merit. Bansal Wire Industries intends to submit a comprehensive response to the authorities within the stipulated seven-day period. Crucially, the company has assured stakeholders that this notice will not materially affect its financial standing, day-to-day operations, or other business activities.

This situation follows a similar notice for the previous financial year, FY2019-20, which was resolved with a minimal financial implication. Bansal Wire Industries has previously reported a 28% rise in revenue for Q2, though its net profit saw a slight dip of 4.3%. The company's shares closed at ₹318.60 on December 2, reflecting a minor decrease.