Morepen Laboratories Ltd has disclosed that it has received a show-cause notice from the Office of the Commissioner, Central GST & Central Excise Commissionerate, Shimla, over an alleged excess Goods and Services Tax refund claim. The notice, dated December 2 and received on December 3, 2025, was issued under Regulation 30 of SEBI Listing Regulations.
According to the company’s filing, the GST authority has alleged that Morepen wrongly claimed accumulated Input Tax Credit (ITC) refunds under Rule 89(4) of the CGST Rules for zero-rated supplies for financial years 2020–21 to 2023–24, instead of Rule 89(4B). The show-cause notice states that this resulted in an “erroneously claimed excess GST refund” amounting to ₹117,94,03,452.
The notice also notes alleged violations of Section 54 of the CGST Act, 2017, read with Rule 89 of the CGST Rules. The final financial impact is yet to be ascertained.
Morepen Laboratories has said that it disputes the allegations, maintaining that the refund claims were made in compliance with GST law. The company plans to submit documents and explanations to the GST authority within the prescribed timeline and is also seeking legal advice to safeguard its interests.
