Schneider Electric Infrastructure Limited has announced that it has received a demand notice from the Joint Commissioner in Noida related to the wrong availment of excess Input Tax Credit (ITC) under the CGST Act, 2017 for the financial year 2017-18. The demand notice, issued on February 3, 2025, indicates that the company is being asked to pay the excess amount of tax along with interest and penalty as per the details below.

Demand Details

• Tax: INR 14,99,774
• Interest: INR 14,99,774
• Penalty: INR 29,99,548
• Total: INR 29,99,548 (as per demand notice)

The notice specifically refers to Section 122(1)(xvii) and Section 122(2)(b) of the CGST Act, along with Section 74(9), stating that the company has wrongly claimed excess Input Tax Credit during the 2017-18 period.

Nature of Violation

The demand arises from a violation in the tax filing for the financial year 2017-18 where the company availed excess Input Tax Credit. The total demand amounts to INR 29,99,548, combining both the tax amount and the penalty.

Impact on Operations

Despite the demand, Schneider Electric Infrastructure has stated that there will be no material impact on its financials, operations, or other business activities. The impact will be limited to the tax liability imposed as per the demand order. Therefore, this issue will not affect the company's regular operations or its day-to-day activities.

Next Steps: Legal Remedies

The company is currently evaluating the appropriate legal remedy to address the demand notice and resolve the issue. The legal process will determine the final course of action regarding the excess Input Tax Credit and the associated penalties.

Schneider Electric Infrastructure Limited has reassured its stakeholders that this tax issue will not disrupt the company’s operations or financial health in a significant way.

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