Grindwell Norton Receives ₹12.98 Crore GST Demand Drop from Authorities

Grindwell Norton Limited has received a significant favorable order from GST authorities, completely dropping a demand of ₹12.98 crores to nil for Input Tax Credit mismatch during the period 2021-22. The company disclosed this major development under Regulation 30 of the SEBI Listing Regulations on December 26, 2025.

GST Demand Resolution Details

The favorable order was received on December 25, 2025, following the company's submissions and representations to the GST Authority. This resolution pertains to one of the Show Cause Notices that was part of a larger GST demand aggregating to ₹36.55 crores, which the company had initially disclosed on September 30, 2025.

Parameter	Details
Authority	Goods and Service Tax (GST) Authority
Original Demand	₹12.98 crores
Revised Demand	Nil
Period	2021-22
Nature	Input Tax Credit mismatch
Order Date	December 25, 2025

Outstanding GST Matters

While this represents a significant positive development, the company still has another Show Cause Notice pending adjudication. The remaining matter involves material movements for job-work transactions amounting to ₹23.57 crores, which is currently under review by the authorities.

GST Demand Status	Amount (₹ Crores)	Status
Input Tax Credit Mismatch	12.98	Dropped to Nil
Job-work Transactions	23.57	Pending Adjudication
Total Original Demand	36.55	Partially Resolved

Financial and Operational Impact

According to the regulatory disclosure, the favorable order has no material impact on the financial, operational, or other activities of the company. The resolution eliminates a substantial potential liability and validates the company's Input Tax Credit claims for the period 2021-22, demonstrating the legitimacy of its tax compliance practices.

Regulatory Compliance

The company has maintained its position that there are no violations or contraventions committed in this matter. The successful resolution of this significant GST demand showcases Grindwell Norton's robust compliance framework and its ability to effectively represent its case before tax authorities. The company continues to work on resolving the remaining pending matter through appropriate legal channels.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.79%	+1.91%	+3.32%	-9.66%	-14.18%	+113.04%

Grindwell Norton Limited has received a GST order from tax authorities in Bengaluru, requiring the company to pay ₹29.77 lakhs towards tax, interest and penalty. The company disclosed this development to stock exchanges on December 11, 2025, under regulatory compliance requirements.

Order Details and Background

The order was issued by the Office of the Deputy Commissioner of Commercial Taxes, Bengaluru, and pertains to Input Tax Credit matters for the financial year 2021-22. The company received the official communication on December 11, 2025.

Parameter:	Details
Issuing Authority:	Office of the Deputy Commissioner of Commercial Taxes, Bengaluru
Order Amount:	₹29.77 lakhs
Components:	Tax, interest and penalty
Related Period:	FY 2021-22
Matter Type:	Input Tax Credit
Receipt Date:	December 11, 2025

Company's Response and Next Steps

Grindwell Norton has indicated that it is evaluating all available options to address the order, including the possibility of filing an appeal against the decision. The company is taking a measured approach to assess the best course of action regarding this tax matter.

Impact Assessment

The company has clarified that this GST order will not have any material impact on its financial, operational or other business activities. This assessment suggests that the order amount, while significant, is manageable within the company's current financial framework and does not pose operational challenges.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, demonstrating the company's commitment to maintaining transparency with stakeholders and regulatory compliance. The information was simultaneously communicated to both the National Stock Exchange of India Limited and BSE Limited.