Short Reversal of ITC: GST Dept slaps Suzlon with Rs. 4158 Penalty and Demand Show Cause Notice

The Hyderabad Office of the Commissioner of Indirect Taxes and Customs has imposed a penalty of ₹4,158 on Suzlon Energy Limited for the short reversal of input tax credit (ITC). This action, taken under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017, follows an audit observation that found discrepancies in Suzlon’s ITC reversal. Suzlon confirmed the penalty in a regulatory filing to the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), emphasizing that the penalty amount is nominal and will not significantly impact its financial or operational activities. The company assured stakeholders of its compliance with necessary reporting requirements as per the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Suzlon, a leading renewable energy solution provider, continues to maintain stable investor confidence despite the minor penalty.