Sugar Giant in Hot Water: Shree Renuka Faces Steep GST Fine, Vows to Fight Back

Shree Renuka Sugars Ltd, one of India’s leading refined sugar exporters, has been hit with two penalty orders totaling ₹15,227,920 by the Central Goods and Services Tax (CGST) Department. The orders, issued on June 7, 2025, by the Assistant Commissioner of CGST & Central Excise, Belagavi City Division, cite violations of the CGST Act, 2017, specifically regarding Input Tax Credit (ITC) provisions.

 

Key Highlights:

 

Penalty Details: The penalties stem from alleged violations of ITC rules and other provisions under Section 74 of the CGST Act. The total demand includes tax, interest, and penalty components.

 

Regulatory Disclosure: Shree Renuka Sugars promptly informed the National Stock Exchange (NSE) and BSE Limited as per SEBI’s listing regulations, ensuring transparency with shareholders and the public.

 

Company Response: The company has stated its intention to challenge the penalty orders by filing an appeal before the appellate authority within the stipulated period. Management maintains that these penalties will not impact the company’s financial health or ongoing operations.

 

Past Penalties: The company has faced similar GST-related penalties in recent months, including a ₹2 million penalty in December 2024 and a ₹2.7 million penalty in February 2025 for other GST compliance issues.

 

Operational Stability: Despite the regulatory headwinds, Shree Renuka Sugars assures stakeholders that business operations remain unaffected and that it continues to comply with all relevant laws.

 

Sources: StockInsights, StudyCafe, Economic Times Legal