1. At a Glance
Sunlite Recycling Industries just got slapped with a ₹13.3 crore GST demand (tax ₹4.64 Cr + interest ₹4.02 Cr + penalty ₹4.64 Cr). The Gujarat GST Department isn’t playing around, but Sunlite says the order is unfair and is ready to fight back.
2. Intro – Why This Matters
Imagine you’re peacefully recycling aluminium when the taxman barges in with a calculator and a smirk. That’s Sunlite’s life right now.
- Demand Order Date: July 24, 2025
- Damage: ₹13.3 crore (ouch).
- Allegation: Violations under GST Act Sections 67(2), 74, and 83.
This is not just a tax notice. It’s a full-blown legal tussle brewing.
3. Deep Dive – What’s the Deal?
- August 8, 2024: GST raid under Section 67(2) at Dantali factory.
- August 28, 2024: Provisional Attachment Order slapped on company stock.
- Sept 4, 2024: Sunlite filed objections, calling the attachment baseless.
- July 24, 2025: Final demand order issued – tax, interest, penalty all stacked up.
The GST authority basically said, “Pay up.” Sunlite replied, “See you in court.”
4. Strategic Impact – What Changes Now?
- Financial Hit: ₹13.3 Cr liability can dent FY26 profits.
- Operations: Stock is still under provisional attachment until legal release.
- Reputation: Regulatory battles never look pretty to investors.
- Legal Drama: Appeal process begins, meaning this story is far from over.
5. Risks & What to Watch
- Appeal could drag on, locking working capital.
- Penalty + interest may escalate if case fails.
- Compliance lapses (if proven) could trigger more scrutiny.
- Watch for auditor notes in the next quarterly results—investors hate red flags.
6. Edu Take™ – Final POV
Sunlite is positioning itself as the victim of a hasty tax grab, but the GST Department clearly believes it has a strong case. The ₹13.3 crore demand isn’t small fry; it’s a serious liability hanging over their balance sheet.
Execution of their appeal and how fast they release attached stock will decide if this is a temporary storm or a long monsoon.
Written by EduInvesting Team | 27 July 2025
Tags: Sunlite Recycling, GST Demand Order, ₹13.3 Crore Tax Dispute, SEBI Regulation 30, EduInvesting Premium
