Mumbai, February 5, 2025 – Tata Elxsi Limited (NSE: TATAELXSI, BSE: 500408) has disclosed an order issued by the Office of the Deputy Commissioner of Central Tax, GST Commissionerate, Bengaluru, imposing a total penalty of INR 43,02,446 under Section 74(1) of the CGST Act, 2017. The company received the order on February 4, 2025.
Regulatory Order Details
The regulatory disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 states:- The GST Commissionerate of Bengaluru issued the order.
- The violation pertains to Section 74(1) of the CGST Act, 2017.
- The total penalty levied amounts to INR 43.02 lakh.
Company’s Response
Tata Elxsi has stated that the penalty will not have any material impact on its financials, operations, or other activities. The company is currently reviewing the order and intends to file an appropriate response or appeal within the prescribed timelines.Strategic Implications
While the penalty amount is relatively minor for Tata Elxsi’s overall financial health, regulatory compliance and potential legal proceedings may affect investor sentiment. The company’s prompt appeal strategy suggests it aims to mitigate any reputational risk.Tata Elxsi will continue to keep stakeholders informed regarding any further developments on this matter