Bansal Wire Industries Receives ₹395 Million Penalty Order and GST Notice

Bansal Wire Industries Ltd. has been hit with significant regulatory actions, receiving an order that includes a penalty of ₹395.1 million and a show cause notice related to GST interest and penalties. These developments mark a crucial juncture for the steel wire manufacturer as it navigates compliance and financial scrutiny.

 

Key Highlights:

 

The company has received an official order imposing a penalty of ₹395.1 million, signaling a substantial financial impact and the need for immediate attention to regulatory compliance.

 

In addition, Bansal Wire Industries has been served a show cause notice concerning GST interest and penalty, raising questions about the company’s tax practices and the accuracy of its GST filings.

 

The GST notice, issued by the State GST Department, seeks detailed documentation regarding Input Tax Credit (ITC) claimed, specifically related to expenses incurred during the company’s recent IPO process.

 

Authorities have directed Bansal Wire Industries to appear and provide invoice-wise details of IPO-related expenses and the corresponding ITC claimed, as part of an ongoing inquiry.

 

The company has clarified that the GST summon is at a preliminary stage and does not constitute an allegation of violation at this point, but the penalty order underscores the seriousness of the compliance issues at hand.

 

These regulatory actions come at a time when Bansal Wire Industries is expanding operations and recently completed a successful IPO, making robust compliance and governance even more critical.

 

The company’s management is expected to respond to the authorities and take corrective actions to address the concerns raised, ensuring continued operational and financial stability.

 

Source: MarketScreener, Bansal Wire Industries Ltd. Corporate Announcements