Crompton Greaves faces ₹8.37 lakh GST interest demand from tax authority
- Crompton Greaves faces a ₹8.37 lakh interest demand for delayed GSTR-3B filing in FY18
- The Deputy Commissioner of Appeals, Chennai, upheld the order citing portal technical errors
- The demand comprises ₹1.02 lakh CGST interest and ₹7.35 lakh SGST interest
- The company plans to appeal under Section 112 of the SGST Act, 2017
- Management states there is no material impact on financials or operations
*this image is generated using AI for illustrative purposes only.
Crompton Greaves Consumer Electricals Ltd received an order on September 9, 2026, from the Deputy Commissioner of Appeals in Chennai upholding a tax interest demand of ₹8,37,680. The demand relates to the financial year 2017-18 and comprises CGST interest of ₹1,02,449 and SGST interest of ₹7,35,231.
The order confirms a previous decision by the Assistant Commissioner (ST) at the Pondy Bazaar Assessment Circle. The demand was raised due to the delayed filing of GSTR-3B returns, despite the company having deposited the tax amount in its Electronic Cash Ledger before the due date. The delay occurred because of technical errors on the GSTN portal.
Company Response
Crompton Greaves stated that it plans to appeal against the order under Section 112 of the SGST Act, 2017. Based on legal advice and the merits of the case, the company expects a favorable outcome from appellate authorities.
Financial Impact
The company disclosed that the potential impact is limited to the interest amount of ₹8,37,680, with no additional tax liability. Management confirmed there is no material impact on the company’s financials, operations, or other activities.
| Component | Amount (₹) |
|---|---|
| CGST Interest | 1,02,449 |
| SGST Interest | 7,35,231 |
| Total Interest Demand | 8,37,680 |
| Tax Liability | Nil |
Historical Stock Returns for Crompton Greaves
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.43% | +1.98% | -6.69% | -5.81% | -27.31% | 0.0% |
How might this ruling influence other large corporations facing similar GST portal technical glitches in pending appeals?
What are the potential timelines for resolving this appeal under Section 112, and could prolonged litigation affect investor sentiment despite the negligible financial impact?
Are there indications that the GSTN portal is undergoing systemic upgrades to prevent such technical errors from triggering automatic interest demands in the future?
15
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
