Crompton has received an order from the Superintendent, Ernakulam Division, Kerala, pertaining to a demand of INR 1,50,512 for the period of April 2021 to March 2022. The demand includes INR 78,770 in tax, INR 51,742 in interest, and a penalty of INR 20,000. Crompton is planning to appeal the order and expects a favourable outcome.
Order Details
An order has been received from the Superintendent, Ernakulam Division, Kerala, for a total demand of INR 1,50,512. This covers the period from April 2021 to March 2022.
Breakdown of Demand
The total demand includes the following components:
- Tax: INR 78,770
- Interest: INR 51,742
- Penalty: INR 20,000
Reason for the Order
The demand is related to an alleged short payment of GST liability under reverse charge. The specific section cited is section 73 of the GST Act, 2017.
Company’s Response
Crompton intends to appeal the order before the Commissioner (Appeals). The company, based on the consultant’s advice, anticipates a favourable outcome from the appeal process.
Potential Financial Impact
The potential financial impact on the company is estimated to be INR 1,50,512.
Source: BSE