Adani Power Faces ₹15.60 Crore GST Demand & Penalty from Tax Authorities

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Ahmedabad, January 29, 2025 – Adani Power Limited (NSE: ADANIPOWER, BSE: 533096) has disclosed that the Additional Commissioner, GST & Central Excise Commissionerate, Rourkela, has issued a GST demand and penalty totaling ₹31.20 crores, comprising ₹15.60 crores in tax liability and an equivalent amount as a penalty.

Key Details of the GST Order

  • Issuing Authority: Additional Commissioner, GST & Central Excise Commissionerate, Rourkela.
  • Date of Communication: January 28, 2025.
  • Nature of Demand: Tax payable under Section 74 of the CGST Act, 2017.
  • Applicable Period: July 2017 to March 2018.
  • Company Entity Concerned: Raipur Energen Ltd., a former wholly-owned subsidiary of Adani Power, was acquired in August 2019 and subsequently merged with the company.

Financial & Operational Impact

  • The company clarified that this demand has no material impact on its financials or operations.
  • Adani Power has indicated that it intends to assess its legal position and exercise its right to appeal against the order.

Regulatory Compliance & Disclosure

  • The company made this disclosure in compliance with Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.
  • The penalty relates to a period before Adani Power acquired Raipur Energen Ltd., suggesting that the liability is inherited from the acquired entity.

Company’s Response & Next Steps

Adani Power has stated that it will review the order and evaluate available legal remedies before taking further steps. The company is expected to contest the demand and penalty through the appropriate appellate mechanisms.
 
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