Greenply shares dip as GST Department conducts search operation at subsidiary unit

Greenply shares fell nearly 2% after GST Department conducted search operation at subsidiary unit in Hardoi. As of 11:43 am the Greenply Industries’ shares fell nearly 2%, at INR 229.45.

The company revealed that the Uttar Pradesh Goods and Services Tax Department had conducted a search operation at a subsidiary – Greenply Industries Sandila Private Limited in Hardoi. The search operation was undertaken by the Office of the Deputy Commissioner of State Tax, Range-A, Lucknow on March 15 and 16.

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Greenply Industries alerted that the search was conducted primarily to verify the Input Tax Credit availed on supplies though GST non-compliant vendors. However, the company further clarified in the BSE filing, “We wish to clarify that the above-said matter is not expected to have any material impact on the financials. The operations or any other activity of the Company.”

While the search indicates the government’s readiness to enforce compliance on the GST regime amid numerous violations, Greenply Industries has assured that the impact on its operations would be insignificant.