Crompton Greaves confirms ₹1.59 Cr SGST demand for FY21
- Additional Commissioner (Appeals) confirmed SGST demand of ₹1.59 crore for FY21
- Demand includes tax of ₹83.35 lakh, interest of ₹67.58 lakh, and penalty of ₹8.33 lakh
- Company plans to appeal under Section 112 of the SGST Act, 2017
- Management states no material impact on financials or operations
*this image is generated using AI for illustrative purposes only.
Crompton Greaves Consumer Electricals Limited received an order from the Additional Commissioner (Appeals), Chandigarh, confirming a State Goods and Services Tax (SGST) demand of ₹1.59 crore for FY21.
The order was received on September 30, 2026. It upholds the previous assessment by the Assistant Commissioner, Baddi, Himachal Pradesh, regarding excess Input Tax Credit claims and reversals on exempted supplies.
Breakdown of the Demand
The total confirmed liability comprises tax, interest, and penalty components as detailed below:
| Component | Amount |
|---|---|
| Tax | ₹83,35,460 |
| Interest | ₹67,58,490 |
| Penalty | ₹8,33,545 |
| Total Demand | ₹1,59,27,495 |
Company Response and Impact
The company stated that the alleged violation involved claiming excess Input Tax Credit in Form GSTR-3B compared to Form GSTR-2A and reversing ITC on exempted supplies where expenses were considered common in nature.
Crompton Greaves Consumer Electricals indicated it plans to appeal against this order under Section 112 of the SGST Act, 2017. Based on the merits of the case and legal advice, the company reasonably expects a favourable outcome from the appellate authorities.
Regarding the financial implication, the company clarified that there is no material impact on its financials, operations, or other activities despite the confirmed demand.
Historical Stock Returns for Crompton Greaves
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.03% | -6.64% | -10.47% | -6.71% | -28.39% | -56.44% |
How might the outcome of Crompton Greaves' appeal under Section 112 influence its effective tax rate and cash flow projections for the upcoming fiscal quarters?
Could this ruling signal a broader regulatory tightening on Input Tax Credit claims across the Indian consumer electricals sector, potentially affecting peers like Havells or Polycab?
What specific internal compliance changes is Crompton Greaves implementing to prevent future discrepancies between GSTR-3B and GSTR-2A filings?
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