Madhav Copper Gets Rs. 31.09 Crore GST Notice
By Ankur Chandra | Published at: Jun 2, 2025 02:15 PM IST
June 2, 2025 | Bhavnagar – Madhav Copper Limited (BSE: MCL), a manufacturer and supplier of copper products, has reported a critical and significant tax-related development under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements.
The company received an Intimation Order (DRC 01A) dated May 30, 2025, from the SGST Department, Gujarat, citing alleged wrongful availing of Input Tax Credit (ITC) for the financial year 2021–22. The action was initiated under Section 73(5)/74(5) of the Goods and Services Tax (GST) Act, 2017.
Key Details of the Disclosure
| Particulars | Details |
|---|---|
| Authority | Assistant Commissioner, State Tax, Gujarat |
| Nature of Action | Order under Section 73(5)/74(5) of GST Act for FY22 |
| Date of Receipt | May 30, 2025 |
| Allegation | Wrongful Availment of Input Tax Credit |
| Tax Demand | ₹31.09 crore (includes interest and penalty) |
| Operational Impact | No material financial or operational impact stated |
The company suggested that it does not agree with the order and is reviewing its legal options and directives. It plans to take appropriate actions, including filing a reply and contesting the demand.
Company Overview
Madhav Copper Limited, headquartered in Bhavnagar, Gujarat, manufactures copper wires, rods, and profiles. The company, which caters to the power, electrical, and industrial equipment sectors, has been actively scaling its production capacity while broadening its product range.
Outlook
Even though the company has reaffirmed that the order will not influence its operations, the demand of ₹31 crores (though contested) can affect the financial position if not resolved favourably. Investors should closely monitor how the company navigates the regulatory challenge in the next couple of quarters.
REF: https://nsearchives.nseindia.com/corporate/MCL_02062025123700_7DiscloueUR30section73GST.pdf
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