Sundram Fasteners Limited has received a penalty order from the Additional Commissioner of Central Tax and Central Exercise, totaling ₹2,70,34,224. The penalty relates to non-payment of GST on capital goods sent for job work and non-reversal of ineligible Input Tax Credit. Sundram Fasteners intends to appeal the order, stating that the management does not expect a material financial impact. The penalty pertains to the period from fiscal year 2018-19 to 2022-23.
Penalty Imposed by Tax Authorities
Sundram Fasteners Limited has been issued a penalty order by the Additional Commissioner of Central Tax and Central Exercise. The penalty amount is ₹2,70,34,224.
Reasons for the Penalty
The penalty is due to the following reasons:
1. Non-payment of GST on capital goods sent for job work that were not returned after three years.
2. Non-reversal of ineligible Input Tax Credit (ITC) passed on by the Head Office to the Branch Office during the financial years 2020-21, 2021-22 and 2022-23.
Company’s Response
The company intends to file an appeal against the order. The management believes that there will be no material financial impact on the company. The penalty relates to the financial years 2018-19 to 2022-23.
Source: BSE
