Bangalore, January 31, 2025 – ABB India Limited (BSE: 500002, NSE: ABB) has received a Goods and Services Tax (GST) penalty order amounting to ₹107.88 crore from the Office of the Principal Commissioner, Bihar under Section 74(1) of the BGST/CGST/IGST Act, 2017.
Key Allegations:
Taxability of Commercial Credit Notes: ABB India is penalized for certain transactions related to commercial credit notes.
Input Tax Credit (ITC) Issues: The order also pertains to the availing and utilization of ITC from suppliers who had not filed their GSTR-3B returns before the due date.
Company's Response & Next Steps
The penalty order was issued on January 28, 2025, and received by ABB India on January 30, 2025, at 12:00 PM.
ABB India has stated that it will appeal against the order and remains optimistic about a favorable outcome at the appellate level.
The company does not foresee any material financial impact from the order.
Investor Considerations
While the penalty amount is significant, ABB India's confidence in securing a favorable ruling suggests that this issue may not materially impact its financial position. Investors may, however, monitor further developments in the case and any potential regulatory implications.