Sterling and Wilson Renewable Energy Limited has received an order regarding a mismatch of input tax credits, resulting in a penalty of approximately INR 14.62 lakhs. The issue pertains to the period from April 2018 to March 2023. The company is currently evaluating the order and determining its next course of action. Part of the amount may be covered under an existing indemnity agreement.
Input Tax Credit Mismatch
Sterling and Wilson Renewable Energy Limited has been notified of an order regarding a mismatch related to input tax credits by the Superintendent of CGST, Jaipur, Rajasthan. The assessment covers the period from April 2018 to March 2023.
Financial Impact
The identified mismatch in input tax credits has led to an assessed penalty of approximately INR 14.62 lakhs. This amount includes the base tax shortfall plus applicable penalties.
Company Response
The company is currently evaluating the details of the order to determine the appropriate course of action. It is important to note that this matter is partially covered under an existing indemnity agreement with Reliance New Energy Limited, Shapoorji Pallonji and Co. Private Limited and Mr. Khurshed Daruvala. The extent of coverage under this indemnity is still being determined as part of the company’s evaluation.
Indemnity Coverage
Sterling and Wilson Renewable Energy Limited expects part of this liability to be addressed through the indemnity agreement it has in place with key stakeholders. The company is actively working to ascertain the specific amount recoverable under the agreement.
Source: BSE
