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Grasim Industries Faces GST Search in Tamil Nadu Plant

Written by: Team Angel OneUpdated on: Jan 29, 2025, 2:32 PM IST
Grasim Industries faced a GST inspection at its Salem unit with records seized due to alleged discrepancies, though the company confirmed no material impact on operations.
Grasim Industries Faces GST Search in Tamil Nadu Plant
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Aditya Birla Group’s Grasim Industries Ltd confirmed that its cellulosic fashion yarn business marketing office and depot in Salem, Tamil Nadu, were subjected to a Goods and Services Tax (GST) inspection by the State Tax Officer (Intelligence), Salem on January 22, 2025.

Inspection and Seizure of Records

Following the search, an order was passed on January 25, 2025, under Section 67 of the Tamil Nadu Goods and Services Tax Act, 2017, leading to the seizure of specific depot records. The investigation reportedly stemmed from alleged discrepancies between records available on the GST portal and those provided by the company.

Response and Regulatory Filing

In a regulatory filing with stock exchanges, Grasim Industries acknowledged the inspection and stated that the matter does not materially impact its financials, operations, or other business activities. The company clarified that the delay in disclosure was unintentional, and the matter was promptly reported once it came to the attention of the appropriate executives.

Market Reaction

As of January 29, 2025, at 1:25 PM, Grasim Industries Ltd shares were trading at ₹2,451.85, up ₹40.55 (1.68%) for the day. While the stock has gained 16.51% over the past year, it has declined by 13.31% in the last six months.

Although the company has assured stakeholders that this development will not disrupt business operations, the inspection highlights the strict regulatory scrutiny on tax compliance in India. Investors will be watching for further updates on any potential developments related to the case.

Takeaways from the Disclosure

  • Authority Conducting Inspection: State Tax Officer, Inspection Cell 4, Office of the Joint Commissioner (State Tax – Intelligence), Salem.
  • Reason for Action: Alleged inconsistencies between company-submitted records and those available on the GST portal.
  • Date of Inspection: January 22, 2025.
  • Date of Order Issued: January 25, 2025.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jan 29, 2025, 2:32 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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