Crompton Greaves Consumer Electricals Limited has informed the Exchange about Action(s) taken or orders passed
CROMPTON · price
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Crompton Greaves Consumer Electricals has received an order from the Assistant Commissioner of Central Tax, Vijayawada, raising a GST demand of around ₹4.50 crore for the period April 2019 to March 2020. The demand includes tax of about ₹1.40 crore, interest of ₹1.70 crore, and a penalty of ₹1.40 crore. The demand was raised because the company allegedly claimed more Input Tax Credit (ITC) in its GSTR 3B returns than what appeared in GSTR 2A. The company plans to appeal before the Commissioner (Appeals) and believes it has a strong case for a favourable outcome. The company has clarified that there is no material impact on its financials, operations, or other activities.
For shareholders, this is a relatively small tax dispute (~₹4.5 crore) compared to the size of Crompton's business, and the company is confident of winning the appeal. The stock price is unlikely to be meaningfully affected, but investors should track the appeal outcome since an adverse ruling could lead to a slightly higher outflow.