Crompton Greaves has received an order from the Joint Commissioner of State Tax (Appeal-VI) regarding an assessment for FY 2018-19. The appeal was partially confirmed, upholding a demand related to the disallowance of Input Tax Credit and GST on Credit notes. The total potential financial impact quantified is INR 22.46 crore. The company plans to appeal this order further, expecting a favorable resolution.
Update on Previous Tax Assessment
Crompton Greaves Consumer Electricals Limited provided an update concerning the appeal filed against an assessment order issued by the Deputy Commissioner of State Tax for the financial year 2018-19. This subsequent order was issued by the Joint Commissioner of State Tax (Appeal-VI), Mumbai.
Details of the Appellate Order
The authority has partially confirmed the original order passed by the Deputy Commissioner. The date of receipt for this appellate order was March 30, 2026, at 04:55 PM. The core issue leading to the demand relates to the disallowance of Input Tax Credit and GST on Credit notes.
Quantified Financial Impact
The potential financial impact of this order, quantified in monetary terms, is substantial:
- Total Potential Impact: INR 22,45,82,868/-
- Breakdown includes: Tax of INR 10,26,78,152/-, Interest of INR 11,15,19,646/-, and Penalty of INR 1,03,85,070/-.
Management has stated that there is no material impact on the company’s overall financials, operations, or other activities resulting from this order.
Next Steps and Future Outlook
Based on the legal advice received, the Company is preparing to file a further appeal against this partially confirmed order. This next step will be taken in accordance with Section 112 of the SGST Act, 2017, with the management reasonably expecting a favorable outcome from the higher appellate authorities.
Source: BSE
