Eternal Limited has informed the exchange regarding orders received from Additional Commissioner, CGST Gurugram Commissionerate, Gurugram, Haryana and Assistant Commissioner, Ranchi, Jharkhand
REGULATORY
▼ Concern Flagged
MEDIUM RISK
📅 Filed on BSE: 18 Mar 2026, 09:34 PM IST · BSE ID: 69587525-6846-4a99-9955-35f6ae17d80b
View Original BSE Filing (PDF)
💡
In Simple Terms
Tax authorities in Gurugram and Ranchi issued demand notices claiming the company owes over INR 11 Crore in unpaid taxes plus penalties and interest.
🤖 AI Summary
- Two GST adjudication orders received 18 March 2026 totalling INR 11.28 Crore in GST demand plus penalties
- Order 1: Gurugram CGST for FY 2019-20 — INR 4,97,99,769/- GST and INR 4,97,99,769/- penalty
- Order 2: Ranchi Jharkhand for FY 2022-23 — INR 5,99,95,835/- GST, INR 2,69,98,126/- interest, INR 59,99,583/- penalty
- Both orders allege short payment of tax; company disputes and plans appeals
- Management asserts strong case on merits and expects no financial impact
🔢 Key Numbers — exact figures from BSE filing, not rounded
GST demand Order 1 (Gurugram FY 2019-20)
INR 4,97,99,769/-
Penalty Order 1 (Gurugram FY 2019-20)
INR 4,97,99,769/-
GST demand Order 2 (Ranchi FY 2022-23)
INR 5,99,95,835/-
Interest Order 2 (Ranchi FY 2022-23)
INR 2,69,98,126/-
Penalty Order 2 (Ranchi FY 2022-23)
INR 59,99,583/-
Total GST demand both orders
INR 11,27,95,604/-
🏢 How This Affects the Company
Total contingent GST liability of INR 11.27 Crore (INR 4,97,99,769 + INR 5,99,95,835) plus interest of INR 2,69,98,126 and penalties of INR 5,57,99,352. Company asserts no expected financial impact pending appeal outcome.
Tax adjudication risk materialised. Pending appeals create contingent liability uncertainty; adverse outcomes at appellate stage increase cash outflow and compliance burden.
👥 What This Means For Shareholders
✅
Action Required
No immediate action required; monitor appeal outcomes via future regulatory filings.
👤
Who Is Affected
All shareholders exposed to contingent liability of INR 11.27 Crore in GST demand plus interest and penalties if appeals are unsuccessful.
🔍
Management Signal
Management is contesting orders legally rather than settling, signalling confidence in compliance position but acknowledging regulatory scrutiny.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
Appeal filing confirmation — Reg 30 disclosure when appeals formally lodged with tax authorities
Appeal hearing outcomes — monitor appellate tribunal orders via subsequent Reg 30 filings
Financial statements impact — check standalone contingent liabilities disclosure in next quarterly/annual results
MEDIUM RISK
Contingent GST liability of INR 11.28 Crore across two jurisdictions. Appeals outcome uncertain; adverse rulings increase cash outflow risk.
💡 Investor Takeaway
Eternal Limited received GST demand orders totalling INR 11.27 Crore in disputed taxes for FY 2019-20 and FY 2022-23, plus INR 2,69,98,126 in interest and INR 5,57,99,352 in penalties. Management asserts strong case on merits and plans appeals; financial impact contingent on appellate outcomes.
⚖️ Strengths & Concerns
✅ Positives
- Company contests orders and asserts strong case on merits; plans formal appeals against both adjudication orders
- Orders are for past periods (FY 2019-20 and 2022-23); no ongoing operations disruption disclosed
⚠️ Concerns
- Total contingent liability of INR 11.27 Crore in GST demand plus INR 2,69,98,126 interest and INR 5,57,99,352 penalties
- Two separate jurisdictions (Haryana and Jharkhand) issued orders; indicates systemic GST compliance disputes across regions