Greenply Industries Receives ₹2.43 Crore Tax Order, Plans Appeal

Greenply Industries has received a formal order from the West Bengal State Tax authority confirming a total tax liability of ₹2.43 crore for the financial year 2019-20. The confirmed amount includes a tax demand of ₹75.82 lakh, ₹90.86 lakh in interest, and a penalty of ₹75.82 lakh. The company stated that the full confirmed amount was paid under protest.

Implications of Tax Orders

Tax disputes, even those pertaining to past financial periods, can lead to significant financial obligations if not resolved favorably. This latest order underscores the ongoing scrutiny of tax compliance practices, particularly concerning claims like Input Tax Credit (ITC).

Recent Tax Challenges for the Company

Greenply Industries has encountered a series of tax-related issues recently. In February-March 2026, the company, alongside its peer Greenpanel Industries, was subject to Income Tax search operations. Earlier, in January 2026, Greenply received a separate tax demand of ₹30.45 lakh from Gujarat authorities for alleged incorrect ITC claims for FY 2019-20. In March 2024, Ahmedabad authorities issued an order demanding over ₹1.36 crore for FY 2018-19. Additionally, a subsidiary, Greenply Sandila Private Limited, faced a GST demand of ₹7.98 crore in June 2025 for alleged excess ITC claims.

Greenply's Response and Strategy

The company intends to file a rectification and/or appeal against the West Bengal tax order within the stipulated timelines. The financial implications for Greenply will ultimately depend on the outcome of these legal proceedings. The company has indicated that this order is not expected to have a material impact on its business operations.

Sector-Wide Scrutiny

The challenges faced by Greenply echo broader trends in the wood panel sector. Greenpanel Industries, another prominent player, also underwent an Income Tax search operation during February-March 2026, highlighting increased regulatory attention in the industry. Competitors like Century Plyboards and Greenlam Industries operate within this same competitive landscape.

Key Risks and Investor Watchlist

The primary risk for Greenply lies in the uncertainty of the appeal process. If the appeal is unsuccessful, the company will be liable for the full confirmed tax, interest, and penalty. Shareholders will be monitoring the progress of Greenply's appeal against the West Bengal tax authority's order. Further updates on the status and potential outcome of the appeal, as well as any developments from ongoing Income Tax investigations, will be important to track.