Precision Electronics Ltd
Precision Electronics GST Order: Rs. 23,22,019 tax demand with 100% penalty
REGULATORY
▼ Concern Flagged
MEDIUM RISK
📅 Filed on BSE: 28 Mar 2026, 11:38 PM IST · BSE ID: feb43422-73f9-4b5f-ba6f-f6ebb3fc189c
View Original BSE Filing (PDF)
💡
In Simple Terms
The tax department ordered Precision Electronics to pay Rs. 23,22,019 in disputed GST plus an equal penalty for alleged compliance gaps in 2019-2021.
🤖 AI Summary
- GST Order-in-Original received March 27, 2026 for period April 2019 to March 2021
- Total tax demand Rs. 23,22,019 comprising three alleged violations with interest applicable
- Penalty assessed at 100% of tax demand, equalling Rs. 23,22,019
- Company states order is appealable and will pursue appeal before Commissioner of Appeals
- Management assesses no material impact on financials, operations, or other activities
🔢 Key Numbers - exact figures from BSE filing, not rounded
Total tax demand
Rs. 23,22,019
Penalty (100% of tax)
Rs. 23,22,019
Input Tax Credit disallowed
Rs. 7,01,789
IGST on imported services (Reverse Charge)
Rs. 15,49,038
GST on electricity charges
Rs. 71,192
Assessment period
April 2019 to March 2021
🏢 How This Affects the Company
Order involves total tax demand of Rs. 23,22,019 with 100% penalty (Rs. 23,22,019) plus interest. Immediate cash outflow contingent on appeal outcome; company states no material financial impact expected.
Tax dispute introduces contingent liability until appeal is resolved. Pending outcome before Commissioner of Appeals creates earnings and cash flow uncertainty.
👥 What This Means For Shareholders
✅
Action Required
No immediate action required. Monitor appeal outcome before Commissioner of Appeals and subsequent regulatory filings for status updates.
👤
Who Is Affected
All shareholders exposed to contingent liability of Rs. 46,44,038 (tax plus penalty, excluding interest) if appeal is unsuccessful. Liability is company-wide, not shareholder-specific.
🔍
Management Signal
Management confidence in appealability and non-materiality suggests belief in compliance defensibility or technical grounds for reversal.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List - track these upcoming events
Appeal filing status with Commissioner of Appeals — monitor regulatory disclosures for timeline
Commissioner of Appeals order — will confirm or overturn tax demand and penalty liability
Quarterly financial statements — check if contingent liability is disclosed or reserve created
MEDIUM RISK
Rs. 46,44,038 contingent liability (tax plus penalty) exists pending appeal outcome. Outcome determinative; non-material management assessment not yet validated by appeals authority.
💡 Investor Takeaway
Precision Electronics faces Rs. 23,22,019 GST tax demand with equal penalty (total Rs. 46,44,038 before interest) for alleged 2019-2021 compliance gaps. Company classifies as appealable and non-material to financials. Appeal outcome before Commissioner of Appeals is determinative.
⚖️ Strengths & Concerns
✅ Positives
- Company explicitly states order is appealable and intends to pursue appeal to Commissioner of Appeals.
- Management assessment finds no material impact on financials, operations, or other activities expected.
⚠️ Concerns
- Tax demand of Rs. 23,22,019 with equal penalty creates Rs. 46,44,038 potential cash outflow plus interest.
- Retroactive assessment covering 24-month period (April 2019 to March 2021) suggests compliance gaps in prior operations.