Schneider Electric Infrastructure Limited has received an appellate order from the Commissioner (Appeals), Vadodara, upholding a tax demand of Rs 3.58 crore for the 2021-22 fiscal year. The dispute relates to an Input Tax Credit (ITC) mismatch between GSTR-3B and GSTR-2A/2B filings. While the company stated that this liability does not materially impact its routine operations or financials, it is currently evaluating its options for further legal recourse.
Schneider Electric Infrastructure Faces Tax Demand of Rs 3.58 Crore
Total liability confirmed at Rs 3.58 crore including interest and penalty. Tax demand pertains to FY 2021-22 input tax credit discrepancy.
Reader Takeaway: Tax demand confirmed by appellate authority, though company claims impact is immaterial to financial health.
What just happened
Schneider Electric Infrastructure Limited (SEIL) received an order from the Commissioner (Appeals), CGST & Central Excise, Vadodara, dated September 28, 2026. The authority rejected the company's appeal regarding an Input Tax Credit (ITC) dispute, confirming the original order issued in December 2025. The total liability stands at Rs 3,57,67,051, which includes a tax demand of Rs 3.25 crore and interest/penalties totaling Rs 32.51 lakh.
Why this matters
The dispute concerns the reconciliation of ITC between Form GSTR-3B and GSTR-2A/2B for the 2021-22 financial year. The appellate authority ruled that the company failed to provide sufficient documentary evidence to reconcile the differences, particularly under "All Other ITC" and "Import of Goods" categories. This creates a regulatory liability that the company must now address either through payment or further litigation.
What changes now
Management has officially stated that they are evaluating the appellate order to decide on subsequent legal remedies. While the company has downplayed the impact on its day-to-day operations and core financials, the confirmation of the demand means the legal process is reaching a stage where resolution is imminent.
Risks to watch
Investors should monitor whether the company proceeds with a further appeal to the GST Tribunal or chooses to settle the demand. Although the current amount is described as immaterial, repeated tax disputes can draw management focus away from operational growth and increase legal costs over time.
What to track next
Watch for any subsequent stock exchange filings confirming whether the company has paid the amount under protest or if they have filed an appeal with higher authorities.