Balmer Lawrie fined ₹18.28 crore by GST Dept for FY21 tax discrepancies
Balmer Lawrie & Company Limited has been ordered to pay ₹18.28 crore by the GST department for FY21. The demand includes ₹8.81 crore tax, ₹8.59 crore interest, and ₹0.88 crore penalty due to alleged discrepancies in outward supplies and reverse charge mechanism. The company is reviewing further legal options.
While the company states the impact is not expected to be material, the penalty of ₹18.28 crore is substantial and could affect short-term financials. Further appellate proceedings introduce uncertainty.
The company has been levied a significant penalty, tax, and interest by the GST department, which is a negative development.
Balmer Lawrie & Company Limited has received a demand order from the GST department under CGST/KGST Act, 2017, for the financial year 2020-21. The order imposes a penalty, tax, and interest due to alleged short declaration of outward supplies in GSTR-3B vis-a-vis GSTR-1 and discrepancies related to reverse charge mechanism (RCM).
The company received the appellate order on August 17, 2026. The GST authorities alleged short declaration/payment of GST liability arising from differences between outward supplies reported in GSTR-1 and tax liability discharged through GSTR-3B, including export transactions. Additionally, there were allegations of excess availment of Input Tax Credit (ITC) concerning RCM transactions.
As a result, the Appellate Authority in Karnataka has determined a demand aggregating to ₹18.28 crore against the company. This includes ₹8.81 crore for tax, ₹8.59 crore for interest, and ₹0.88 crore for penalty. The appeal was related to disputed amounts totaling ₹31.72 lakh. Balmer Lawrie is currently examining the implications of this order and evaluating further legal remedies. The company stated that the order is not expected to materially impact its operations, and any financial impact would depend on the outcome of further appellate proceedings.
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Balmer Lawrie & Company Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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