GE Power India Ltd faces a ₹319.5 million tax penalty from authorities, linked to disputed tax assessments. The company plans to challenge the order, which could impact short-term finances but aligns with ongoing disputes in the sector. Shares dipped marginally post-announcement.
GE Power India Ltd disclosed receiving a tax penalty demand of ₹319.5 million (₹31.95 crore) from tax authorities. The order stems from reassessment proceedings on prior fiscal years, a common challenge for engineering firms amid evolving tax regulations.
Key Highlights:
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Penalty amount stands at ₹319.5 million, inclusive of interest and potential disallowances on deductions.
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The demand arises from GST/Service Tax disputes on input credits or service classifications.
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GE Power intends to file an appeal with higher authorities, viewing the order as "not tenable.
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No material financial impact anticipated currently, given contingent provisions already booked.
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Shares traded 0.5-1% lower in early deals, reflecting sector-wide sensitivity to tax news.
This development highlights persistent tax litigation risks in India's power equipment space, though appeals often yield favorable outcomes.
Source: Company filing with BSE and NSE; GE Power India Ltd regulatory announcement.