Crompton Greaves Faces Tax Demand from State Authority Over Transitional Credit Disallowance
Crompton Greaves Consumer Electricals Limited has received an order from the Office of the Additional Commissioner of Appeals, State Tax, Chhattisgarh, concerning a tax demand that has been upheld by the appellate authority. The order relates to a period spanning July 2017 to March 2018 and involves the disallowance of transitional credit claimed by the company.The order issued on June 23, 2026, established the tax components as follows: Tax demand of INR 23,36,265, interest of INR 26,66,030, and a penalty of INR 2,33,627. The total initial demand amount stood at INR 52,35,922.
The company has indicated its intention to appeal the decision in line with Section 112 of the SGST Act, 2017, and expects a favorable outcome from the appellate authorities based on the merits of the matter and prevailing law.
A breakdown of the financial exposure is presented below:
| Financial Component | Amount (INR) |
|---|---|
| Tax Demand | 23,36,265 |
| Interest Liability | 37,13,317 |
| Penalty Imposed | 2,33,627 |
| Potential Total Exposure | 62,83,209 |
The tax demand arose from the disallowance of transitional credit that was claimed by Crompton Greaves. The company noted that despite the potential financial exposure related to this tax matter, there is no material impact on its financials, operations, or other activities.
CROMPTON Stock Price Movement
Today, Crompton Greaves Consumer Electricals Limited shares edged higher in post-market activity to settle at ₹275.25, marking a 1.01% gain for the day. The equity traded within a range of ₹270 and ₹276.75, with over 2.05 million shares transacting.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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