Subsidiary receives Kerala VAT demand order of Rs. 1,26,50,769/-

Hindware Limited, a subsidiary of the company, has received a Demand Order under the Kerala Value Added Tax Act, 2003.

Mon 5 Oct 2026

VAT demand amount

Rs. 1,26,50,769/-

Period involved

FY 2012-13

Reason for demand

non-submission of required forms

Interest

Applicable interest shall continue to accrue until the date of payment

Recovery/collection charges

5% for arrears up to Rs. 5 lakh and 7.5% for arrears exceeding Rs. 5 lakh

What happened

• Hindware Home Innovation Limited has informed the stock exchanges that its subsidiary, Hindware Limited, has received a Demand Order dated 26th September, 2026, received on 5th October, 2026.
• The order has been passed under the Kerala Value Added Tax Act, 2003 by the Deputy Commissioner (Arrear Recovery): State GST Department, Ernakulam, Kerala.
• The order directs payment of a VAT demand of Rs. 1,26,50,769/-.

Why the demand was raised

• The demand has been generated on account of non-submission of required forms under the Kerala Value Added Tax Act, 2003.
• The period involved is FY 2012-13.

What else the order carries

• Applicable interest shall continue to accrue until the date of payment.
• Recovery/collection charges are also leviable at 5% for arrears up to Rs. 5 lakh and 7.5% for arrears exceeding Rs. 5 lakh.

What the company has said

• The company is examining the matter in consultation with its legal counsel and evaluating the available legal remedies.
• Pending completion of such evaluation, the financial impact, if any, cannot be ascertained at this stage.

Points for a retail investor to note

• The order is a demand raised on a subsidiary, and the amount stated in the order is Rs. 1,26,50,769/, with interest continuing to accrue until payment and recovery/collection charges leviable as stated.
• The stated reason is procedural, namely non-submission of required forms for a period going back to FY 2012-13.
• The company has said it is evaluating legal remedies, so how the matter proceeds from here is something only future disclosures will show.

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