Crompton Greaves Consumer Electricals Limited has received a GST demand order from Kerala tax authorities, imposing a total liability of ₹1.50 lakh for alleged short liability under the reverse charge mechanism during the financial year 2021-22. The company disclosed this regulatory development to stock exchanges on December 12, 2025, under SEBI listing obligations.

GST Demand Details

The Office of the Superintendent, Ernakulam Division, Kerala, issued the demand order under Section 73 of the GST Act, 2017. The order pertains to alleged short liability paid under the reverse charge mechanism for the period April 2021 to March 2022.

Company's Response Strategy

Crompton Greaves Consumer Electricals received the order on December 11, 2025, at 4:31 PM and has outlined its response strategy based on legal consultation. The company plans to challenge the demand through the appellate process.

Key aspects of the company's approach include:

• Filing an appeal before the Commissioner (Appeals)
• Relying on the merits of the matter and prevailing law
• Seeking guidance from tax consultants
• Expecting favorable orders from appellate authorities

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided comprehensive details as required under SEBI Master Circular No. SEBI/HO/CFD/CFD-PoD2/P/CIR/P/2023/120 dated July 11, 2023.

Financial Impact Assessment

The company has quantified the potential financial impact at ₹1.50 lakh, representing the total demand amount. This includes the primary tax liability along with interest and penalty components as determined by the tax authorities for the specified assessment period.

Crompton Greaves Consumer Electricals Limited has announced securing a major contract from Maharashtra State Electricity Distribution Company Limited (MSEDCL) worth ₹287.18 crores for solar water pumping systems. The order was disclosed on December 11, 2025, in compliance with SEBI listing regulations.

Contract Details and Scope

The comprehensive EPC (Engineering, Procurement, and Construction) contract encompasses the design, manufacture, supply, installation, testing, and commissioning of Solar Water Pumping Systems (SWPS) with photovoltaic modules. The project falls under the MTSKPY/PM-KUSUM scheme and will be implemented across various locations throughout Maharashtra state.

Project Timeline and Execution

The contract stipulates completion within 60 days from the date of issue of Notice to Proceed (NTP) or work order. This tight timeline reflects the urgency of the renewable energy initiative and demonstrates the company's capability to handle large-scale solar infrastructure projects efficiently.

Regulatory Compliance and Transparency

The order disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that this is a domestic contract with no promoter or group company interests involved, and it does not constitute a related party transaction.

Strategic Significance

This substantial order reinforces Crompton Greaves' position in the renewable energy sector, particularly in solar water pumping solutions. The PM-KUSUM scheme is a central government initiative aimed at providing energy security to farmers while contributing to India's renewable energy targets. The contract demonstrates the company's technical capabilities in solar technology integration and its ability to secure significant government contracts in the clean energy space.