Refex Industries Hit with ₹29.31 Cr GST Demand, Plans Appeal

Refex Industries Limited has disclosed that it has received a tax demand order of ₹29.31 crore from the Additional Commissioner, CGST and Central Excise, Bhopal. The demand, covering FY 2018-19 to FY 2020-21, includes tax, interest, and penalties related to disallowed Input Tax Credit (ITC).

Breakdown of the Tax Demand

Refex Industries received the official demand order on March 28, 2025, which was issued on March 27, 2025.

Reason for the Tax Demand

The tax authorities have disallowed ITC amounting to ₹14.65 crore, citing that some of the suppliers' GST Identification Numbers (GSTINs) were inactive at the time of transactions. As a result, the company has been ordered to pay additional interest and penalties, leading to a total demand of ₹29.31 crore.

Refex Industries’ Response

The company has contested the validity of the demand and has decided to file an appeal within the prescribed time period. Management asserts that the demand does not have a material impact on the company’s financial health, operations, or business activities.

Regulatory Compliance & Market Disclosure

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). As per SEBI’s Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, companies are required to disclose such material tax-related developments.

Investor Outlook & Financial Implications

📌 Legal Appeal Pending: Refex Industries believes the demand is not justified and will challenge it through legal proceedings.

📌 No Financial Disruptions Expected: The company maintains that the tax claim does not significantly impact its financial performance.

📌 Stock Market Considerations: Investors may closely monitor Refex Industries’ next financial statements and the progress of the appeal to assess any indirect impacts.

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