Azad Engineering Limited has informed the Exchange about receipt of communications dated 24th March 2026 wherein orders have been passed imposing penalty under CGST/SGST Act, 2017 and corresponding provisions of IGST Act, 2017
AZAD · price
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On the reaction day the stock moved 4.0 pts more than Nifty Microcap 250 and 4.7 pts more than its Heavy Electrical Equipment peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Azad Engineering has received two orders from the Joint Commissioner of Central Tax and GST, Hyderabad, imposing a total penalty of about ₹14.49 lakhs (₹10.38 lakhs + ₹1.11 lakhs) under the CGST/SGST Act, 2017. The penalties relate to financial years 2019-20 and 2020-21 and pertain to two issues: claiming blocked Input Tax Credit (ITC) under Section 17(5) and non-payment of GST on other income. The company has stated that it does not expect any material impact on its financials or operations from these orders. It is evaluating options and plans to file an appeal, expressing confidence in a favourable outcome at a higher forum.
The penalty amount is small relative to the company's size and management has flagged no material financial or operational impact, so the direct hit to shareholders is minimal. However, the underlying tax dispute and the appeal process could remain a minor overhang until resolved.