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ACME Solar Faces ₹149.73 Crore GST Demand
ACME Solar Holdings Limited has been issued a Show-Cause cum Demand Notice (SCN) by the Directorate General of Goods & Services Tax Intelligence (DGGI). The notice alleges a GST short payment of approximately ₹149.73 Crores, covering supplies related to solar power generating systems for the period April 2021 to March 2025. The company disclosed on March 29, 2026, that it received this notice from DGGI, Jaipur, on March 28, 2026.
Company Plans to Contest Allegations
ACME Solar stated it is reviewing the notice thoroughly and intends to contest the matter. The company has been given an opportunity to present its case before the tax authorities. ACME Solar expressed that no immediate financial or operational impact is anticipated from this demand. The company will engage its tax and legal advisors to prepare a formal reply and contest the alleged GST demand before the appropriate legal and regulatory forums.
Background in Renewable Energy and Tax Navigations
As a major player in India's renewable energy sector, ACME Solar Holdings operates a substantial portfolio of solar, wind, and hybrid projects. The company has a history of navigating 'Change in Law' events, including securing compensation for increased GST rates and Basic Customs Duty (BCD) on solar components. For instance, a subsidiary successfully obtained approximately ₹47.40 Crore in compensation from the Rajasthan Electricity Regulatory Commission (RERC) in November 2025 due to such impacts. As of March 2026, ACME Solar has 13 GST numbers registered across 11 states, reflecting its widespread operational presence.
Potential Financial and Operational Risks
While ACME Solar plans to contest the demand, a primary risk lies in the potential financial burden if the DGGI's claim is upheld. This would include the principal amount of ₹149.73 Crores, plus significant applicable interest and penalties. A prolonged legal battle could also divert management focus and resources. Shareholders will monitor further developments regarding the company's legal strategy and any potential financial provisions that might be required, impacting profitability and the balance sheet.
Industry Context
ACME Solar operates in a competitive landscape alongside major renewable energy firms such as Adani Green Energy, Tata Power Solar, ReNew Energy Global, and Waaree Energies. These companies also navigate complex tax and regulatory environments. The broader growth of the solar sector is intrinsically linked to stable regulatory frameworks, making such tax disputes a point of attention for the industry.