Indong Tea Company Limited Receives Closure of Investigation Report from West Bengal Tax Authorities

Indong Tea Company Limited Receives Closure of Investigation Report from West Bengal Tax Authorities​

Indong Tea Company Limited has received a formal report confirming the closure of an investigation process initiated by the Government of West Bengal. The report was issued following an inspection conducted under the West Bengal Goods and Service Tax Act, 2017.

The investigation was initiated on November 21, 2025, at the registered office and place of business of the company. The Deputy Commissioner of State Tax, Bureau of Investigation (South Bengal), H.Q., Government of West Bengal, conducted the inspection process which concluded with the issuance of the closure report received by the company on July 17, 2026.

Investigation Findings and Reconciliations​

The investigation focused on the details of exempted goods such as lentils, rice, and jute for the periods of 2024-25 and 2025-26. During the inquiry, it was noted that while certain bills of supply were produced, transport documents were not available during the initial inspection phase.

The authorities also reviewed income booked under "supply of Farm labour" involving activities such as digging drains and leveling soil. Furthermore, the company’s declarations in GSTR 9 and GSTR 3B regarding exempt supplies were scrutinized. The following table outlines the exempt supply amounts declared by the company during the specified periods:

Verification of Agricultural Activities​

During the personal hearings held in early 2026, representatives for Indong Tea Company Limited provided documentation to support their claims regarding taxable and exempt supplies. The company submitted copies of Bills of Supply, consignment notes, and purchase documents for tea (HSN 0902), jute, white raw rice, and red lentils.

The authorities verified that the bulk volume of goods purchased and sold matched the figures reflected in the Annual Financial Statements, leading to the reconciliation of the exempt supply issues.

A specific point of inquiry involved a "Plantation Development Works Agreement" dated February 14, 2023, with Vista Solar Energy Limited. The agreement covered several scope of services including:

• Uprooting of Tea Bushes and Shade Trees
• Land Preparation
• Drainage
• Tea Planting
• Shade Tree Planting
• Fencing

The investigation also reviewed the leasing of JCBs and tractors owned by the company. It was determined that because these machines were used for agricultural activities, such as managing green tea leaves at the garden, the leasing services fall under the exemption category as defined in Notification No. 12/2017 - Central Tax (Rate).

Conclusion of Proceedings​

The authorities concluded that as both primary points raised in the inspection report were reconciled during the hearings, there is no tax liability on these specific matters. The investigation process has been officially closed.

Indong Tea Company Limited stated that there is no material impact on the financial, operational, or other activities of the company resulting from the issuance of this closure report.

Stock Price Movement​

Indong Tea Company Ltd shares settled at ₹8.25 on Friday, jumping 10.00% for the day. The stock traded completely flat throughout the session, remaining locked at exactly ₹8.25 between its high and low.