Sequent Scientific receives GST show cause notice, faces INR 1.65 crore penalty

Sequent Scientific Limited announced on September 30, 2025, that it has received a show cause notice (SCN) from the deputy commissioner state tax, Thane, Maharashtra, concerning GST issues. The company is currently reviewing the SCN and plans to determine its course of action.

The notice, dated September 30, 2025, stems from discrepancies noted during a GST audit for the fiscal year 2021-22, specifically disallowing Input Tax Credit of GST and levying a penalty of INR 1,65,73,471/- under Section 73(1) of the CGST Act, 2017.

Despite the penalty, Sequent Scientific believes the SCN has no merits and intends to submit its response to the authority within the stipulated timelines. The company does not anticipate any material financial, operational, or other impact from this development.