DIC India shares gain 5% after Karnataka GST authorities slash penalty

Don't want to miss the best from Business Standard?

DIC India Share Price Today:  Shares of printing inks manufacturer DIC India gained momentum on Thursday, December 4, following a sharp cut in the GST liability imposed by the Karnataka GST department. The stock surged ₹4.64 to touch an intraday high of ₹528.45 per share on the NSE.

 

The scrip has recovered around 9 per cent from its 52-week low of ₹485 recorded last month on October 1. However, it still lags roughly 36 per cent behind its 52-week high of ₹824.10 touched on December 12 last year.

 

Buying interest persisted through the morning trade. At 9:57 am, DIC India shares were trading at ₹527, up 4.36 per cent from the previous close of ₹505.60. In comparison, the benchmark Nifty 50 was trading 48 points higher, up 0.19 per cent at 26,034.

 

The company’s market capitalisation stood at ₹483.73 crore on the NSE as of December 4.

GST department revises total GST demand

The upward movement in DIC India’s share price came after the Karnataka GST department revised the total GST demand against the company to ₹3.81 lakh from ₹6.71 crore.

 

Earlier, DIC India had informed the exchanges that the department issued an order under Form DRC-07 in respect of a Show Cause Notice (DRC-01) for FY2021-22. The notice involved a demand of ₹6.71 crore (GST: ₹3.83 crore + Interest: ₹2.87 crore) related to alleged ineligible input tax credit (ITC) claims and non-payment of taxes by certain suppliers.

 

Following representations by the company to the Assistant Commissioner of Commercial Taxes, Bengaluru, the GST demand was drastically reduced to ₹3.81 lakh (GST: ₹2.03 lakh + Interest: ₹1.58 lakh + Penalty: ₹20,298), implying a reduction of ₹6.67 crore from the original demand, according to the regulatory filing submitted by the company.   "However, basis the representations before the Assistant Commissioner of Commercial Taxes, Bengaluru, Karnataka, the said demand has been reduced to  ₹3,81,602/- (GST – ₹2,02,980/- + Interest – ₹1,58,324/- + Penalty –₹20,298/) in the final order," the company said in its exchange filing.  DIC India further said that there is no impact on the financials, operations, or other activities of the company, except as mentioned above. "We are currently conducting a detailed review of the order and, after comprehensive analysis, will decide on the next steps," said the company.