Thermax Limited has received a GST assessment order from tax authorities in Jamshedpur, imposing a penalty of ₹11.86 lakh for alleged input tax credit discrepancies. The company disclosed this development to stock exchanges on January 1, 2026, in compliance with regulatory requirements.

Assessment Order Details

The State Tax Officer (GST) in Jamshedpur, Jharkhand, passed the assessment order imposing the penalty on the engineering company. The order was received by Thermax on December 31, 2025.

Nature of Violation

The penalty stems from input tax credit availed by Thermax that allegedly did not match with the tax reported by suppliers in their returns on the GSTIN portal. According to the assessment order, the GST credit claimed by the company was not supported by corresponding supplier reporting in their returns on the government's GST portal.

Company's Response and Impact

Thermax has indicated that the assessment order will have no impact on its financial, operational, or other activities. The company plans to challenge the penalty through the appropriate legal channels.

Key aspects of the company's position include:

• No quantifiable monetary impact on operations expected
• Plans to file an appeal against the assessment order
• Will challenge the demand in due course of time

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations, which requires listed companies to inform stock exchanges about material developments. The communication was signed by Company Secretary and Compliance Officer Sangeet Hunjan and submitted to both BSE Limited and National Stock Exchange of India Limited.

The company provided detailed information as required by SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring full transparency with investors and regulatory authorities regarding the GST assessment matter.

Thermax has announced that its subsidiary First Energy has established a new wholly owned step-down subsidiary named First Energy 15 Pvt Ltd. This development represents a strategic expansion of the company's corporate structure through its existing subsidiary network.

Corporate Structure Enhancement

The creation of First Energy 15 Pvt Ltd marks a significant step in organizational development within the Thermax group. As a wholly owned step-down subsidiary of First Energy, the new entity will operate under the broader umbrella of Thermax's business operations.

Strategic Business Development

This subsidiary formation demonstrates Thermax's continued focus on expanding its operational capabilities through structured corporate entities. The establishment of First Energy 15 Pvt Ltd provides the company with additional flexibility in its business operations and strategic initiatives.

The new subsidiary structure allows for focused business activities while maintaining the benefits of being part of the larger Thermax ecosystem. This approach enables specialized operations while leveraging the parent company's resources and expertise.