Shares of Eureka Forbes Ltd. dipped 2.33% to ₹361.90 on the BSE after the company disclosed a ₹273.40 crore GST show‑cause notice from the Uttar Pradesh tax authority.
The notice, filed on September 25, alleges a tax liability of ₹149.21 crore, plus ₹109.27 crore in interest and ₹14.92 crore in penalties, totaling the ₹273.40 crore demand.
In its filing, Eureka Forbes declared the notice "devoid of merits" and said it would contest the claim in full. The company stressed that the demand was calculated using pan‑India financials without matching transaction‑level data to its Uttar Pradesh registration.
The health‑and‑hygiene sector has seen a few tax probes this year; however, the immediate market reaction was limited to the 2.3% slide, suggesting investors remain neutral on the long‑term impact.
Looking ahead, the firm expects to resolve the matter within the statutory timeline and has not altered its FY 2024 guidance. The next earnings call is scheduled for early November, where management will address any lingering tax concerns.