Rs. 18.95 Cr GST Shock! Greenply Hit with Massive ITC Demand: Legal Battle Ahead:

Rs. 18.95 Cr GST Shock! Greenply Hit with Massive ITC Demand: Legal Battle Ahead On June 20, 2025, Greenply Industries Limited issued a regulatory filing to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) informing them that it had received an official order dated June 19, 2025, at 03:06 P.M., passed by the government officer-Assistant Commissioner from Jurisdiction, Hardoi, Sector-3 Lucknow (A): Lucknow, Uttar Pradesh, State/UT, Uttar Pradesh. The order was passed under the relevant provision of the Central Goods and Services Tax Act, 2017, for the FY 2023-24, reporting an extra claim of Input Tax Credit (ITC) on the basis of default by the chain of vendors of the company. The issue is connected to Goods and Services Tax (GST) compliance by Greenply Sandila Private Limited for the financial year 2023–2024. According to the concerned authority, a total amount of Rs. 79,816,898.32 is demanded from the company, with interest of Rs. 29,954,297.76 and a penalty of Rs. 7,98,16,898.32 has been levied on the company. This results in a total liability of over Rs. 18.95 crore (tax + interest + penalty) on the company.

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The regulatory filing is written to the BSE and NSE under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation requires companies to inform the stock exchanges when there is any significant legal or regulatory development that could affect the company. This filing ensures transparency, investor protection, and market integrity. The order passed by the Assistant Commissioner says, The company is guilty of claiming excess Input Tax Credit (ITC). The company has claimed more credit than is actually required to be claimed. This issue has arisen because of defaults (non-compliance or issues) in the vendor chain. Meaning Greenply may have bought goods and services from one or more of the suppliers or vendors, who may not have followed GST rules effectively. This directly impacts the ITC claims of the company. The company, Greenply Sandila Private Limited, has clarified that it had followed all the required conditions to claim Input Tax Credit mentioned under the law. The company believes the issued order is incorrect, and now the company has planned to file a rectification or an appeal against this order within the time allowed by law.

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GST Dept. Issued Penalty Order to Enviro Infra Engineers Limited for FY 2021-22; Company Assures No Material Impact

In conclusion, the company is not accepting the claim of the tax department and has decided to file a case against the department via proper legal channels. The company says this action does not have any major effect on its business operations or finances. Meaning there will be no major impact on the company's earnings and day-to-day activities. The company considers the situation as manageable and not a serious threat to their business.