Kalyan Jewellers shares fall over 4% amid GST penalty 

Shares of Kalyan Jewellers Ltd slipped over 4% on Monday amid a penalty of Rs 34.41 lakh by CGST department. The jewellery stock fell 4.27% to Rs 438.90 against the previous close of Rs 458.50 on BSE. Market cap of the firm fell to Rs 45,269 crore. Total 4.09 lakh shares of the firm changed hands amounting to a turnover of Rs 18.23 crore.  

Kalyan Jewellers shares have gained 23.70 per cent in one year and risen 295.50 per cent in two years. 
In terms of technicals, the relative strength index (RSI) of Kalyan Jewellers stock stands at 22.5, signaling it's trading in the oversold zone. The stock has a beta of 0.8, indicating very low volatility in a year. 

Kalyan Jewellers said the Company has received an order under section 74 of CGST Act, 2017 on January 24.

The company said it reversed the inadmissible input tax credit but has not paid the interest portion. Hence Rs 34,41,583/- was imposed as interest & Penalty

"We do not foresee any material impact on financial or operational or other activities of the company. Further, the company is in the process of appealing the same in appropriate appellate authority," said Kalyan Jewellers. 

On Friday, Kalyan Jewellers India Limited said it has incorporated a wholly owned subsidiary in UK -“Kalyan Gold & Diamond Jewellery Limited.”

Kalyan Jewellers said Kalyan Gold & Diamond Jewellery Limited has a subscribed capital of GBP 1000. The object of incorporation of the subsidiary is to expand the Jewellery business in UK. The business of the Subsidiary is in line with the business of the company, said Kalyan Jewellers.  The cost of acquisition or the price at which the shares are acquired is 1000 Pounds (1000 equity shares of 1 Pound each). 

Kalyan Jewellers has 100% stake in its newly formed subsidiary, the firm said.