Southern Magnesium & Chemicals faces GST demand of Rs.30.32 lakh
Southern Magnesium and Chemicals Limited has received a Goods and Services Tax (GST) demand notice of Rs.30,32,204 from the tax authorities regarding alleged short payment of output tax. The notice, dated June 5, 2026, was downloaded by the company on June 12, 2026, and covers the period from April 2025 to February 2026. The company stated that it believes it has a strong case on the merits and does not anticipate any financial impact from this demand.
The demand was raised by the Deputy Assistant Commissioner (ST), Special Circle, Rajamahendravaram Division, under Section 74A(9)(i) of the CGST/AP GST Act, 2017. According to the disclosure made to the exchange, the notice pertains to an alleged short payment of output tax. The management has assessed the situation and indicated that the company will contest the matter, asserting that the demand is not tenable.
The following table outlines the key details of the regulatory disclosure:
| Details of Event | Information |
|---|---|
| Name of the Authority | Deputy Assistant Commissioner (ST), Special Circle, Rajamahendravaram Division |
| Nature of Action | Demand Notice under Section 74A(9)(i) of the CGST/AP GST Act 2017 |
| Demand Amount | Rs.30,32,204 |
| Period of Demand | April 2025 to February 2026 |
| Date of Receipt | June 12, 2026 |
| Alleged Violation | Short payment of output tax |
| Expected Impact | No financial impact expected |
The disclosure was submitted in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing was signed by N. Rajender Prasad, Managing Director and CFO of Southern Magnesium and Chemicals Limited.
