Bansal Wire Industries Faces Show Cause Notice Over Rs 203 Crore Tax, Interest, and Penalty Demand

Bansal Wire Industries Ltd, a major steel wire manufacturer, is grappling with a significant tax issue following receipt of a Show Cause Notice (SCN) for the financial year 2021-22 from the Joint Commissioner of State GST, Ghaziabad. The notice alleges violations including blocked and excess Input Tax Credit claims and non-payment of tax on the sale of RODTEP (Remission of Duties and Taxes on Exported Products) licenses.

The total liability cited in the notice amounts to Rs 203 crore (approximately Rs 2.03 billion), breaking down into tax arrears, interest, and penalties. This sizeable demand has raised concerns about potential financial consequences; however, Bansal Wire Industries has publicly declared the allegations "untenable" and without merit.

The company is currently reviewing the notice details, with plans to file a comprehensive response within the prescribed timeline. It expects the outcome to involve substantial reduction of the claimed amount and anticipates no significant financial impact on the company’s operations or liquidity.

This tax notice is part of ongoing regulatory scrutiny aimed at ensuring compliance and accountability in GST-related transactions within India's manufacturing sector.

Key Highlights

Bansal Wire Industries Ltd issued a Show Cause Notice for Rs 203 crore in tax, interest, and penalties.

Notice pertains to fiscal year 2021-22, involving blocked/excess Input Tax Credit and RODTEP license tax issues.

The amount includes undisputed tax demand, levied interest, and penalties for alleged non-compliance.

Company describes the notice as “untenable,” planning to appeal and respond officially.

No material financial impact expected on company’s operations or liquidity.

Reflects intensifying GST compliance enforcement in the manufacturing sector.

Sources: Scanx Trade, Indian Express, Prysm News, Stockwatch Live