Grindwell Norton has received significant relief from tax authorities following an official communication regarding GST proceedings against the company.

GST Authority Decision

The Goods and Service Tax Authority has issued a demand drop intimation to the company, effectively dropping proceedings against a demand that was raised under section 73. The company received the order from the Office of the Deputy Commissioner of State Tax on December 31, 2025.

Demand Reduction Details

The GST proceedings have resulted in a substantial reduction of the original demand amount. The following table shows the impact of the authority's decision:

This reduction follows the company's reply filed against the Show Cause Notice, demonstrating the effectiveness of their response to the tax authority's concerns.

Company's Position and Next Steps

Grindwell Norton maintains that the reduced demand of ₹4.17 crores is not maintainable based on their assessment. The company has indicated its intention to prefer a further appeal against this remaining demand amount.

The management has clarified that there is no material impact expected on the company's financial, operational, or other business activities as a result of these proceedings.

Regulatory Compliance

The disclosure has been made under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, ensuring transparency with stakeholders. This development represents a favorable outcome for the abrasives and industrial products manufacturer, significantly reducing the potential financial exposure from the original GST demand.

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.

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.

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.