Crompton Greaves Consumer Electricals Limited has received an order from the Joint Commissioner of State Tax (Appeal-IV), Mumbai, concerning a demand raised by the Deputy Commissioner of State Tax for the financial year 2019-20. The appeal order partially allows the initial demand, which was based on the disallowance of Input Tax Credit due to GSTR 2A mismatches and other tax-related issues. The company anticipates a favourable outcome from further appellate authorities.
Update on SGST Proceedings
Crompton Greaves Consumer Electricals Limited has provided an update regarding its appeal against an assessment order issued by the Deputy Commissioner of State Tax, Bandra West, for the financial year 2019-20. This order, dated August 28, 2024, had raised a demand related to GST implications.
Joint Commissioner Appeal Order
The company has now received an order from the Joint Commissioner of State Tax (Appeal-IV), Mumbai, dated July 23, 2026. This appellate order has partially allowed the demand order previously passed by the Deputy Commissioner. The initial demand was primarily based on the disallowance of Input Tax Credit (ITC) due to mismatches between GSTR 2A and other records, along with tax implications arising from the reverse charge mechanism on certain service provider invoices.
Financial Impact and Future Outlook
The potential financial impact stemming from this matter is estimated at ₹5,78,84,851, comprising Tax of ₹2,80,31,405, interest of ₹2,70,50,306, and a penalty of ₹28,03,141. Despite this, the company has stated that there is no material impact anticipated on its financials, operations, or other activities. Crompton Greaves Consumer Electricals Limited plans to file a further appeal against this order, in line with Section 112 of the SGST Act, 2017, and expressed confidence in securing a favourable decision from the appellate authorities.
Source: BSE
