New Delhi, January 28, 2025 – Orient Electric Limited (NSE: ORIENTELEC, BSE: 541301) has disclosed that it has received a Goods and Services Tax (GST) demand notice amounting to ₹88.64 crore, including tax, penalty, and interest. The Joint Commissioner, CGST, and Central Excise Commissionerate, Manik Bagh Palace, Indore, emailed the notice on January 27, 2025, at 2:27 PM.
Key Details of the GST Demand
- Issuing Authority: CGST & Central Excise Commissionerate, Indore.
- Tax Liability Reference: Section 74(9) of the CGST Act, 2017.
- Total Amount Demanded: ₹88,64,77,560.
- Tax Differential: ₹88.64 crore.
- Penalty: ₹88.64 crore.
- Interest: Additional interest applicable.
Alleged GST Violation
The GST demand is based on differential tax rates applied to imported goods:- Orient Electric imported goods under Entry No. 438A, paying 18% IGST and availing input credit.
- The company supplied these goods to its depot in Madhya Pradesh and classified them under Entry Nos. 226 and 227, attracting 12% GST instead of 18%.
- The tax authorities claim that GST should have been paid 18% on final sales, leading to the differential tax demand.
Company’s Response & Next Steps
Orient Electric has stated that:- It does not anticipate any material financial impact beyond the stated demand.
- The company intends to file an appeal against the GST order and contest the claim legally.