Sterling and Wilson faces tax shortfall, plans appeal

Sterling and Wilson Renewable Energy Limited (the Company) announced an order from Tamil Nadu GST authorities for a tax shortfall totaling approximately 5.74 crore rupees, plus an equal penalty and applicable interest. The demand pertains to the period of January 2019 to April 2019. The Company plans to appeal the order with the appropriate authorities within the prescribed time limit.

Despite the demand, Sterling and Wilson stated there are no financial implications for the Company. This is due to an indemnity agreement covering the amount, entered into with Reliance New Energy Limited, Shapoorji Pallonji and Co. Pvt. Ltd., and Mr. Khurshed Daruvala.

The communication, received on August 26, 2025, from the joint commissioner, GST & Central Excise, Chennai South Commissionerate, outlines that full payment of the tax, interest, and 50% of the penalty within 30 days would close the case. The company reaffirmed its commitment to challenging the order.