Flair Writing Faces ₹2.86 Crore Tax Notice Over Input Tax Credit

Flair Writing, a prominent company in the stationery sector, has been issued a Show Cause Notice under Section 73 of the CGST Act, 2017, for alleged excess Input Tax Credit (ITC) claims during the 2020-21 financial year.

Key Details

  1. Tax and Penalty:

Tax payable: ₹2,86,02,958/-

Penalty: ₹28,60,296/-

  1. Issuing Authority:
    The notice was issued by the Office of the Deputy Commissioner, Uttarakhand on November 29, 2024.
  2. Nature of Allegation:
    The claim pertains to disallowed excess ITC availed by the company.
  3. Company’s Response:

Flair Writing plans to file an appeal based on strong legal grounds.

The company clarified that the notice does not impact its financials, operations, or other activities.

Compliance Note

The disclosure of this development was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, emphasizing the company’s commitment to transparency.

Looking Ahead

This case highlights ongoing scrutiny by GST authorities over ITC claims. Flair Writing’s ability to secure a favorable outcome will depend on presenting robust evidence to substantiate its claims. Further developments in this matter are awaited.

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