Mumbai, February 28, 2025 – Crompton Greaves Consumer Electricals Limited (BSE: 539876, NSE: CROMPTON) disclosed today that it received an order from the Assistant Commissioner of State Tax, Guwahati, Assam, imposing a tax liability of ₹33,11,010 for the period between April 2020 and March 2021.
Key Highlights of the Order:
| Particulars | Amount (₹) |
|---|---|
| Tax Demand | 17,48,183 |
| Interest | 13,88,009 |
| Penalty | 1,74,818 |
| Total Demand | 33,11,010 |
Details of the Alleged Violation:
The demand arises under Section 73 of the GST Act, 2017, primarily due to reporting discrepancies related to input tax credit claimed in GSTR-9, pertaining to one financial year but availed in the subsequent year.Company's Stance and Next Steps:
Crompton Greaves, guided by legal advice, has expressed confidence in challenging the demand. The company is preparing to file an appeal before the Commissioner (Appeals) and anticipates a favorable outcome based on the merits of the case and prevailing tax regulations.Financial Impact:
The financial exposure due to this demand amounts to ₹33.11 lakh. The company believes this matter will not materially impact its operational performance, pending the outcome of the appeal.Management Commentary:
Rashmi Khandelwal, Company Secretary & Compliance Officer, commented, "Based on our thorough assessment and legal consultation, we anticipate a favorable resolution upon appeal. We are committed to ensuring compliance with all regulatory obligations and safeguarding stakeholder interests."Strategic Outlook:
Crompton Greaves continues to maintain its regulatory compliance framework robustly and expects minimal disruption to operations or financial performance from this tax dispute.Investors and stakeholders are advised to monitor developments regarding the appeal proceedings closely.