Samrat Forgings Ltd has received a favorable order from the GST Authority, concluding tax proceedings and dropping a massive demand of ₹114.36 crore for FY 2020–21. Only a minor residual demand of ₹1.78 lakh remains, which the company confirmed will not materially impact its financial position.
Samrat Forgings Ltd announced that the GST Authority has issued an order concluding ongoing tax proceedings. The order drops a previously raised demand of ₹114.36 crore for FY 2020–21, significantly reducing the company’s potential liability. Instead, a small demand of ₹1.78 lakh has been raised, which management clarified will not affect operations or finances.
This outcome provides relief to the company, which manufactures precision-forged components for automotive and industrial sectors. The resolution of such a large tax dispute strengthens investor confidence and allows management to focus on growth and operational priorities without the overhang of a major liability.
Key Highlights
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Tax demand dropped: ₹114.36 crore for FY 2020–21.
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Residual demand: ₹1.78 lakh, deemed immaterial by the company.
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Impact: No significant financial or operational effect expected.
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Investor sentiment: Positive, as a major liability cloud has been lifted.
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Business context: Manufacturer of precision forged components serving automotive and industrial markets.
Sources: StockInsights.ai corporate announcement; Business Standard company filings