Garden Reach Shipbuilders & Engineers Ltd. (GRSE) has disclosed the imposition of a financial penalty by the Government of West Bengal Commercial Taxes (GST) authority, communicated on February 13, 2026. The penalty totals ₹10,19,377, stemming from violations related to Input Tax Credit (ITC) reversal, supplier GSTIN cancellations, and GSTR-3B non-filing for FY 2018-19. GRSE confirmed that the order is currently appealable and stated there is no material impact on financial or operational activities.
Disclosure of Penalty Order
Garden Reach Shipbuilders & Engineers Ltd. (GRSE) has issued a mandatory disclosure regarding an order imposing a penalty against the Company by the Government of West Bengal Commercial Taxes (GST) authority. This communication was received on February 13, 2026.
Details of the Adjudication
The penalty order was passed following an appeal related to the assessment for FY 2018-19. The primary basis for the penalty assessment included:
- Reversal of Input Tax Credit (ITC) for disallowed credit notes.
- Issues arising from the cancellation of GSTINs belonging to suppliers.
- Non-filing of GSTR-3B returns by certain suppliers.
The total penalty amount imposed amounts to ₹10,19,377.
Impact and Appeal Status
GRSE has explicitly stated that the intimation of this tax payable will result in no material impact on the financial position, operations, or other activities of the Company. Furthermore, the order is currently reviewable, and management will assess the situation to determine whether to exercise their right to appeal the decision.
Source: BSE
