Crompton Greaves faces partial tax demand after Joint Commissioner rules on FY 2019-20 assessment
Crompton Greaves Consumer Electricals Limited has received a decision from the Joint Commissioner of State Tax (Appeal-IV), Mumbai, regarding a pre-existing assessment related to the financial year 2019-20. The appellate body partially allowed the demand order initially passed by the Deputy Commissioner of State Tax.The company is now planning to appeal this latest ruling in accordance with Section 112 of the SGST Act, 2017, and has expressed reasonable expectations for a favorable outcome from higher appellate authorities.
The original assessment stemmed from a demand raised pursuant to the assessment order passed by the Deputy Commissioner of State Tax, Bandra West 502, Nodal Division - 6, Mumbai, Maharashtra dated August 28, 2024. The nature of the violation centers on the disallowance of Input Tax Credit (ITC). This action was triggered by a mismatch with GSTR 2A and relates to tax imposed under the reverse charge mechanism concerning extra invoices of service providers that appeared only in GSTR 2A.
The company received the order from the Joint Commissioner Appeal-IV on July 23, 2026 at 2:28 PM. The potential impact of this matter is quantified by the following details:
| Component | Amount |
|---|---|
| Total Potential Impact | ₹5,78,84,851 |
| Tax component | ₹2,80,31,405 |
| Interest component | ₹2,70,50,306 |
| Penalty component | ₹28,03,141 |
Crompton Greaves stated that there is no material impact on the financials, operations or other activities of the company despite the potential demand.
CROMPTON Stock Price Movement
Crompton Greaves Consumer Electricals Limited shares shed value, closing today at ₹252.45 after slipping 1.43%. The equity saw a volume of 3.26 million shares traded in the market.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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