Crompton greaves Consumer Electricals Limited has disclosed receiving an order from the Joint Commissioner of State Tax (Appeal-VI) regarding its SGST assessment for the year 2018-19. The order, received on March 30, 2026, partially confirms a previous demand raised by the Deputy Commissioner of State Tax.

Background of the Tax Assessment

The current development stems from an earlier assessment order passed by the Deputy Commissioner of State Tax, Mumbai-LTU-520, dated April 30, 2024. The company had previously informed stock exchanges about receiving an order under section 73 of the SGST Act, 2017, which raised a demand for the assessment year 2018-19. Following this, the company filed an appeal before The Commissioner (Appeals).

Details of the Joint Commissioner's Order

The Joint Commissioner of State Tax (Appeal-VI) has now passed an order that partially confirms the Deputy Commissioner's earlier decision. The order addresses violations related to disallowance of Input Tax Credit and GST on credit notes.

Financial Impact Assessment

The potential financial impact of the order amounts to ₹22,45,82,868, broken down across multiple components:

Despite the substantial monetary figure involved, the company has stated that there is no material impact expected on its financials, operations, or other activities.

Company's Response and Next Steps

Based on the merits of the matter, prevailing law, and advice from consultants, Crompton Greaves Consumer Electricals plans to appeal against this order. The company intends to file the appeal in line with Section 112 of the SGST Act, 2017, and reasonably expects a favorable order from the appellate authorities.

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring compliance with stock exchange notification requirements. Company Secretary and Compliance Officer Rashmi Khandelwal signed the disclosure on March 31, 2026.

Crompton Greaves Consumer Electricals Limited has disclosed receiving an income tax order from the Commissioner of Income Tax (Appeals) for Assessment Year 2021-22. The company received the order on March 30, 2026, at 04:07 PM from the National Faceless Appeals Centre, Delhi, in response to an appeal filed against an earlier assessment order.

Income Tax Appeal Details

The order pertains to an appeal filed by the company against an assessment order dated December 20, 2022, which was passed under Section 143(3) of the Income Tax Act, 1961 for AY 2021-22. The CIT(A) order was issued under Section 250 of the Income Tax Act, 1961.

Financial Impact and Demand Breakdown

The income tax order has resulted in a significant financial demand against the company:

Reasons for Tax Demand

The demand has been raised on account of three primary disallowances:

• Disallowance of provision for warranty and after sales services
• Depreciation on intangible assets
• Employee Stock Option Plan (ESOP) expenses

Company's Response and Next Steps

Based on the merits of the matter, prevailing law, and advice from consultants, Crompton Greaves is planning to file an appeal against this order. The company has expressed confidence in receiving a favourable order from the appellate authorities.

Impact Assessment

Despite the substantial monetary demand of over INR 10 crore, the company has stated that there is no material impact on its financials, operations, or other activities. This disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company has fulfilled its regulatory obligations by providing detailed information about the income tax order to both BSE and NSE, ensuring transparency for investors and stakeholders regarding this development.