W S Industries (I) Limited has informed the Exchange regarding 'Announcement Under Regulation 30'.
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Awaiting price reaction for this filing.
W.S. Industries (India) Limited received orders from the State Tax Officer, Group-III, Intelligence-II, Chennai, under Section 74 of the GST Act for alleged ineligible claim/availment of Input Tax Credit (ITC) across five financial years from FY2019-20 to FY2023-24. The total financial implication is approximately ₹13.28 lakhs, comprising ₹1.82 lakhs in tax, ₹9.63 lakhs in interest (at 18% per annum), and ₹1.82 lakhs in penalty (50% of the tax amount). The company can reduce the penalty further (or avoid doubling to 100%) by paying the tax and applicable interest within 30 days of receiving the order. Each year's penalty is below the ₹1 lakh SEBI disclosure threshold, meaning the matter technically only required quarterly disclosure, but the company is disclosing voluntarily on a consolidated basis in the interest of transparency. The company has stated there is no material impact on its financials, operations, or other activities.
The total financial impact of around ₹13.28 lakhs is small and the company has confirmed no material impact on operations or financials, so this is unlikely to move the stock price. Shareholders should note the GST compliance issue but view it as a routine regulatory matter rather than a serious concern.