Eureka Forbes has received a Rs 273.40 crore GST show cause notice from Uttar Pradesh tax authorities for the 2022-23 fiscal year. The company claims the demand is meritless and plans to contest it, stating no material financial impact is expected.
Eureka Forbes Receives Rs 273 Crore GST Notice for FY 2022-23
Total Demand: Rs 273.40 Crore | Tax Liability: Rs 149.21 Crore
Reader Takeaway: Management dismisses the claim as meritless, though the large demand requires monitoring for legal resolution outcomes.
What just happened
Eureka Forbes Ltd has been issued a Show Cause Notice (SCN) by the Deputy Commissioner of State Tax, Lucknow, Uttar Pradesh. The notice, dated September 25, 2026, concerns the financial year 2022-23 and carries a total demand of Rs 273.40 crore. This includes Rs 149.21 crore in tax liability, Rs 109.27 crore in interest, and Rs 14.92 crore in penalties.
Why this matters
The demand represents a significant figure for the company. The notice was issued under Section 73(1) of the UP Goods and Services Tax Act. Eureka Forbes contends that the authorities calculated the demand using pan-India financial data rather than limiting the scope to transactions specifically attributable to its Uttar Pradesh GST registration.
Management response
Eureka Forbes has firmly stated that the notice is "devoid of merits" and "not sustainable on facts or in law or in procedure." The company plans to contest the order through the appropriate legal channels within the mandated timelines. Management has assured shareholders that they do not anticipate a material impact on the company’s ongoing operations or financial health as a result of this specific notice.
What to track next
Investors should closely track further disclosures regarding the progress of this legal contest. Future exchange filings will provide clarity on whether the tax authorities accept the company's defense or if the matter proceeds to further litigation or adjudication.