Eureka Forbes gets ₹273 crore GST notice from Uttar Pradesh for FY23
Synopsis
Eureka Forbes has been slapped with a ₹273.40 crore GST show-cause notice by Uttar Pradesh authorities for FY23 — a demand the company says was built on pan-India financial data rather than actual UP transaction records. The company is contesting it, but the stock still fell 2.33% on disclosure day.
Key Takeaways
Eureka Forbes received a GST show-cause notice from the Uttar Pradesh tax department on 25 September , disclosed on 28 September .
Total proposed demand stands at ₹273.40 crore , comprising GST liability of ₹149.21 crore , interest of ₹109.27 crore , and penalty of ₹14.92 crore .
The notice was issued under Section 73(1) of the UP GST Act, 2017 by the Deputy Commissioner, State Tax, Sector-1, Lucknow .
Eureka Forbes argues the demand was calculated using pan-India FY23 data without establishing UP-specific transaction-level liability.
The company has called the notice 'devoid of merits' and plans to contest it within prescribed timelines.
Shares closed at ₹361.90 on the BSE , down 2.33% on the day of disclosure.
Eureka Forbes Limited, the Mumbai-headquartered health and hygiene products company, has received a show-cause notice from the Uttar Pradesh GST department proposing a total tax demand of ₹273.40 crore for the financial year 2022-23. The notice was received after office hours on 25 September, with the company disclosing it to stock exchanges on 28 September — the first working day after receipt.
What the Notice Demands
The show-cause notice was issued by the Deputy Commissioner, State Tax, Sector-1, Lucknow, under Section 73(1) of the Uttar Pradesh Goods and Services Tax Act, 2017. It alleges a core GST liability of ₹149.21 crore, to which interest of ₹109.27 crore and a penalty of ₹14.92 crore have been added, bringing the total proposed demand to ₹273.40 crore.
Why Eureka Forbes Is Contesting It
In a regulatory filing, Eureka Forbes argued that the demand appears to have been calculated using pan-India financial data drawn from its audited FY23 financial statements, without establishing the corresponding transaction-level tax liability specifically attributable to its Uttar Pradesh GST registration. The company maintained that the notice 'is devoid of merits, not sustainable on facts or in law or in procedure' and said it intends to contest the notice comprehensively within the prescribed timelines.
Eureka Forbes also stated that it does not foresee any material impact on its financial position, business operations, or other activities as a result of the notice. This distinction — between a show-cause notice and a confirmed demand — is significant: a show-cause notice initiates proceedings but does not constitute a final tax order.
Market Reaction
Shares of Eureka Forbes closed at ₹361.90 on the Bombay Stock Exchange (BSE) on the day of the disclosure, down ₹8.65 or 2.33% from the previous close. It is unclear whether the decline was directly linked to the GST notice or broader market movement.
Broader Context
This notice is part of a wider pattern of state GST authorities issuing retrospective demands to large consumer goods companies, often leveraging consolidated financial filings to estimate state-level liabilities. Critics of such notices argue that using pan-India data without transaction-level attribution can result in inflated demands that do not reflect actual state-wise tax obligations. Eureka Forbes's pushback on procedural and factual grounds mirrors the approach taken by several other listed companies facing similar notices in recent years. The company's response is due within the timelines prescribed under the Uttar Pradesh GST Act.
Point of View
But their methodology — extrapolating from consolidated national accounts — is legally contested and often procedurally weak. Eureka Forbes's argument that pan-India data cannot substitute for transaction-level UP attribution is sound in principle and has precedent. The real question is whether the company's compliance infrastructure is robust enough to demonstrate that gap convincingly in adjudication. With several listed FMCG and consumer durables firms facing similar retrospective demands, this case could signal how aggressively UP intends to pursue FY23 assessments.
NationPress
29 Sept 2026
Frequently Asked Questions
What is the Eureka Forbes GST notice about?
Eureka Forbes has received a show-cause notice from the Uttar Pradesh GST department proposing a total tax demand of ₹273.40 crore for the financial year 2022-23. The demand includes a GST liability of ₹149.21 crore, interest of ₹109.27 crore, and a penalty of ₹14.92 crore.
Why is Eureka Forbes contesting the notice?
The company argues that the demand was calculated using pan-India financial data from its audited FY23 statements without establishing the specific transaction-level tax liability attributable to its Uttar Pradesh GST registration. It has called the notice legally and factually unsustainable.
Will this notice impact Eureka Forbes financially?
Eureka Forbes has stated it does not foresee any material impact on its financials, operations, or other activities from this show-cause notice. A show-cause notice initiates proceedings but is not a confirmed tax demand.
When was the notice issued and when was it disclosed?
The show-cause notice was received by Eureka Forbes after office hours on 25 September. The company disclosed it to stock exchanges on 28 September, which was the first working day following its receipt.
How did Eureka Forbes shares react to the notice?
Shares of Eureka Forbes closed at ₹361.90 on the BSE on the day of disclosure, down ₹8.65 or 2.33% from the previous close. It is not confirmed whether the decline was directly attributable to the GST notice.
