Trident Limited, a leading Indian textile manufacturer, has secured a major relief from the Goods and Services Tax (GST) authorities. The company announced that GST demand proceedings totaling ₹518.66 crore, related to the financial years 2018-19 and 2020-21, have been formally dropped by the authorities.
Details of the GST Relief
As per the company’s regulatory filing, the Office of the Principal Commissioner, Central GST Commissionerate, Ludhiana, issued an order nullifying the proceedings initiated under a Show Cause Notice. This order effectively cancels the alleged tax demand of ₹518.66 crore, along with any associated interest and penalties.
Reasons for Dropping the Tax Demand
The GST authorities cited two key findings:
- No suppression of outward tax liability was identified, despite variances between E-way Bills and GST returns.
- Input Tax Credit (ITC) had been correctly availed by Trident.
Based on these findings, the authorities concluded that “no further action is warranted in this matter.”
Financial and Operational Impact
Trident confirmed that the resolution of the GST proceedings does not have any financial impact on the company. By eliminating this significant potential liability, the order provides greater clarity and stability to Trident’s financial position, allowing the company to focus on its core operations without regulatory overhang.
Company Statement
In its disclosure, Trident expressed satisfaction with the outcome, highlighting the resolution as a positive development in addressing a long-standing tax matter. The company sees this as a step forward in reinforcing its compliance practices and financial transparency.
Regulatory Compliance
The announcement was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information was communicated to both the National Stock Exchange of India (NSE) and the BSE, where Trident’s shares are listed.
Summary
This development marks a significant milestone for Trident Limited, removing a major regulatory uncertainty. By resolving this substantial GST dispute, the company reinforces investor confidence in its financial governance and adherence to tax regulations, paving the way for stable business growth.
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