Shares of Trident Ltd were trading in the red and 1% lower on 2 July after the company received a show cause notice worth Rs 51.87 crore. 

The company announced that they have been sent a show cause notice from the Central Goods and Services Tax (CGST) Commissionerate in Ludhiana for alleged tax dues of Rs 51.87 crore, including interest and penalty.

The warning addresses anomalies in input tax credit (ITC) reconciliation and external tax liability reduction resulting from variations between e-way invoices and GST filings for the fiscal years 2018-19 to 2020-21. The corporation notified the exchanges.

Trident stated that it will provide a detailed response to the authorities, noting that the company’s GST returns were previously reviewed by the CGST department with no complaints on the same grounds.

“There will be no material impact on financials, operations or other activities of the company due to issuance of SCN only,” Trident said in a regulatory filing.

The corporation said that no immediate penalties or limits had been imposed, and the ultimate consequence, if any, would be known once the procedures were completed.

At 1:03 pm, the shares of Trident were trading 1.18% lower at Rs 30.75 on NSE. 

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