Bayer CropScience Hit with Rs. 19.20 Million GST Penalty for FY 2017-18

Team Finance Saathi

22/Jan/2025

What's covered under the Article

Bayer CropScience faces Rs. 19.20 million GST penalty imposed by CBIC, Indore, for FY 2017-18.
The penalty pertains to GST on outward supply and is appealable under applicable regulations.
The company plans to assess the order and may exercise its right to appeal the decision.

Bayer CropScience Limited, a prominent player in the agribusiness sector, has received a penalty order of Rs. 19.20 million from the Office of the Assistant Commissioner, CBIC, Indore, Bhopal, Madhya Pradesh. The order pertains to issues related to GST on outward supplies for the financial year 2017-18.

The penalty was officially communicated to the company on January 21, 2025. As per the disclosure made by Bayer CropScience to BSE Limited (Company Code: 506285, Scrip Code: BAYERCROP) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company is now evaluating the impact of the order on its operations and finances.

Nature of the Violation

The Central Board of Indirect Taxes and Customs (CBIC) has cited discrepancies related to the GST on outward supplies during the financial year 2017-18. This regulatory action has resulted in a substantial financial penalty for Bayer CropScience.

Financial Impact

The quantifiable monetary impact of the penalty is Rs. 19.20 million. While this amount does pose a financial liability, Bayer CropScience has indicated that the order is appealable, and the company is currently assessing whether to exercise its right to appeal under the applicable regulatory framework.

Next Steps

Bayer CropScience intends to thoroughly review the order and its implications before determining the appropriate course of action. This includes the possibility of appealing the penalty to contest or mitigate its financial and operational impact.

Regulatory Compliance

Bayer CropScience has ensured transparency in compliance with regulatory requirements by promptly disclosing the penalty and its details to the stock exchange under SEBI LODR Regulations.

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