BSECompany Update1d ago · 1 Oct 2026, 03:07 pm

ARCL Organics Ltd has informed the exchange about receipt of show cause notice dated 30.09.2026.

ARCL Organics Ltd · 543993

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ARCL Organics Ltd has received a show cause notice from the GST Authority, West Bengal, for alleged non-payment of tax on outward supplies of taxable goods treated as non-taxable during FY 2022-23. The proposed demand is ₹5,05,21,772, comprising tax, interest, and penalty.

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Earnings Impact2/10
Growth Catalyst1/10
Governance Concern1/10
Regulatory Risk8/10
Balance Sheet Risk2/10
Liquidity Impact5/10
Market Sentiment2/10

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ARCL Organics Ltd - 543993 - Intimation Of Show Cause Notice In Form GST DRC-01.

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October 1, 2026 The Secretary, BSE Limited, 1st Floor, New Trading Ring, Rotunda Building, Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400 001 Code No. 543993 Sub.: Intimation of Show Cause Notice in Form GST DRC-01 bearing Reference No. ZD190926072018Z dated 30th September, 2026 pertaining to Financial Year 2022-23 Ref.: Regulation 30 read with Clause 20 of Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”). and the SEBI Master Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026 (‘SEBI Master Circular’) Dear Sir/Madam, With reference to the above-mentioned Listing Regulations, we would like to inform that the Company has received a Show Cause Notice in Form GST DRC-01 bearing Reference No. ZD190926072018Z dated 30th September, 2026, pertaining to the Financial Year 2022-23, issued by the GST Authority, West Bengal. The Show Cause Notice has been issued under Section 73 of the WBGST/CGST/IGST Acts in relation to alleged non-payment of tax on account of outward supply of taxable goods being treated as non- taxable during the tax period April 2022 to March 2023. Vide the said Show Cause Notice, the GST Authority has proposed a total demand of ₹5,05,21,772/-, comprising tax of ₹2,77,88,607/-, interest of ₹1,99,54,307/- and penalty of ₹27,78,858/-. The Company is examining the Show Cause Notice and the allegations contained therein and, based on the facts and applicable law, shall submit its appropriate response within the prescribed time. The Company shall take all necessary steps available under law in respect of the said proceedings. The details required under Clause 20 of Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements). Regulations read with the applicable SEBI circulars/industry standards are enclosed as Annexure A. This is for your information and record. Yours Sincerely, For ARCL Organics Limited Deepak Daga Company Secretary and Compliance Officer Membership No.: A50346 Encl.: as above Annexure A Sr. Details of Events that need to be Information of such events(s) No. provided GST Authority, West Bengal – Mr. Kallol Sengupta, Deputy 1. Name of the authority Commissioner 2. Nature and details of the action(s) Show Cause Notice in Form GST DRC-01, Ref. No. taken or order(s) passed. ZD190926072018Z dated 30.09.2026, issued under Section 73 of the WBGST/CGST/IGST Acts for FY 2022-23. 3. Date of receipt of direction or order, Notice received on 30.09.2026. including any ad-interim or interim orders, or any other communication from the authority The Department has alleged that “Aqua Strong Bond”, a 4. Details of violation(s) / product used as an additive binder, should be classified under contravention(s) committed or HSN Code 3906 instead of HSN Code 2309, resulting in alleged to be committed. alleged non-payment of GST on outward taxable supplies treated as non-taxable. The Department has proposed a demand of ₹5,05,21,772/-, comprising Tax of ₹2,77,88,607/- , Interest of ₹1,99,54,307/- and Penalty of ₹27,78,858/-. The Company disputes the alleged classification and proposed demand and is of the view that “Aqua Strong Bond” is appropriately classifiable under HSN Code 2309. 5. Impact on financial, operation or The Company is examining the notice and will submit its other activities of the listed entity, response within the prescribed time. The proposed demand is quantifiable in monetary terms to not a final determination of liability. There is no immediate the extent possible. impact on financial, operations or other activities of the Company owing to SCN. In future company will proceed through legal route.