Dharmaj Crop Guard to appeal tax demand over GST, ITC issues

Dharmaj Crop Guard Limited announced the receipt of an order from the Office of Commissioner Central GST & Central Excise, Ahmedabad. The communication alleges wrongful availment of Input Tax Credit (ITC) on a solar plant system, totaling INR 15,86,956, along with interest and penalties.

Additionally, the order claims a short payment of tax amounting to INR 2,09,05,088 due to alleged misclassification of goods. The audit period covered by these allegations spans April 2018 to March 2024. The total penalty imposed by the communication is INR 2,24,92,044.

Dharmaj Crop Guard stated that there is no major financial implication on the company and intends to file an appeal before the Commissioner (Appeals), Central GST, Ahmedabad, within ninety days. The company maintains its actions were bona fide and in accordance with GST law, disputing the findings as interpretational issues regarding ITC eligibility and product classification. It reserves all legal rights and remedies.