Sterling Tools receives tax notice over alleged GST credit irregularities

Sterling Tools Limited announced today that it received a Demand-cum-Show Cause Notice from the Assistant Commissioner of Commercial Taxes, Kolar, Karnataka, on September 10, 2025. The notice pertains to alleged excess availment of IGST Input Tax Credit, as compared to figures reflected in GSTR-2B.

The notice proposes a demand of INR 7,870,864, including applicable interest and penalties, related to the alleged GST input tax credit excess. The company stated that it firmly believes it has strong legal and factual grounds to contest the demand and plans to file an appropriate response within the stipulated timelines.

Sterling Tools maintains that it will take all necessary actions to defend its case before the relevant authorities, asserting that there is no material financial impact at this stage.