Nelco Limited GST Demand Order ₹14.14 Crore Confirmed For FY20-FY22 Period; Nelco Limited Shares Rise 0.46%

Mumbai, March 11: Nelco Limited disclosed that the Office of the Commissioner of CGST and Central Excise has confirmed a GST demand order of ₹14.14 crore relating to the period from April 1, 2019 to March 31, 2022 under the reverse charge mechanism, according to an exchange filing dated March 11, 2026.

The company informed the stock exchanges that the order was received on March 10, 2026 at approximately 06:00 p.m. The adjudication was issued under Section 74 of the Central Goods and Services Tax Act, 2017 following earlier proceedings initiated by the Joint Commissioner of CGST and Central Excise.

The order confirms the tax demand including penalty linked to GST liability assessed on transactions subject to the reverse charge mechanism during the specified assessment period. Nelco stated that it had earlier submitted its response before the adjudicating authority after receiving a show cause notice regarding the alleged tax liability.

According to the regulatory disclosure submitted under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the confirmed demand amounts to ₹1,414 lakh including penalty. Of this, the penalty component alone accounts for ₹707 lakh.

The company indicated that it is evaluating legal remedies and intends to pursue an appeal against the adjudication order.

Nelco Limited Share Price Movement On March 11, 2026

Nelco share price traded modestly higher during Wednesday’s session despite the regulatory update.

The stock was trading at ₹602.80 on the National Stock Exchange, up ₹2.75 or 0.46% as of 1:47 p.m. IST on March 11, 2026, compared with the previous close of ₹600.05, according to exchange data.

The stock opened at ₹603.65 and moved between a session high of ₹617.35 and a low of ₹601.20 so far during the day. Market capitalisation stood near ₹1,380 crore during the session.

Company Background

Nelco Limited is part of the Tata Group and operates in the satellite communication and managed network services segment. The company provides VSAT connectivity, satellite broadband and network integration solutions primarily for enterprise and government clients.

Its service portfolio includes satellite-based communication infrastructure used in sectors such as banking networks, maritime connectivity, defence communications and remote enterprise networks.

The company has expanded its role in satellite communication services in India following regulatory developments supporting private sector participation in space and satcom infrastructure.

Conclusion

The confirmed GST demand relates to historical transactions assessed under reverse charge provisions covering the period from April 1, 2019 to March 31, 2022. While the adjudicating authority has upheld the demand including penalties, Nelco has indicated it will challenge the order through appellate proceedings.

The company stated in its exchange filing that there is no immediate financial impact at this stage while legal options are being evaluated.

Source:

• https://www.nseindia.com/get-quote/equity/NELCO/NELCO-Limited
• https://nsearchives.nseindia.com/corporate/NELCO_11032026130858_BSENSEletterforTaxUpdate.pdf