Finolex Cables Receives GST Demand Order of ₹29.46 Crores from Dehradun Authorities
Finolex Cables Limited disclosed receiving a GST order from Dehradun authorities demanding ₹29.46 crores for alleged violations including ITC mismatch, E-way bill differences, and late creditor payments. The company plans to appeal the order, which it considers ill-considered, and states the demand won't significantly impact operations.
*this image is generated using AI for illustrative purposes only.
Finolex Cables Limited has informed stock exchanges about receiving a GST order from tax authorities in Dehradun, confirming a significant tax demand of ₹29.46 crores. The company received the order through email on 31.03.2026 and has announced its intention to challenge the decision through an appeal.
GST Order Details
The Additional Commissioner, Central GST, Dehradun, Uttarakhand issued the order dated 30.03.2026 under the Office of the Principal Commissioner, Central GST Commissionerate, Dehradun. The order confirms the demand raised in a Show Cause Notice that was previously issued to the company.
| Parameter | Details |
|---|---|
| Issuing Authority | Additional Commissioner, Central GST, Dehradun |
| Order Date | 30.03.2026 |
| Receipt Date | 31.03.2026 (via email) |
| Total Demand | ₹29,46,09,345 |
| Tax Component | ₹29,44,22,806 |
| Penalty Component | ₹1,86,539 |
Alleged Violations
The GST authorities have alleged several contraventions in their order against Finolex Cables:
- ITC Mismatch: Discrepancies in Input Tax Credit claims
- E-way Bill Differences: Variations between reported and actual E-way bills
- Late Payment to Creditors: Delays in payments made to suppliers and creditors
These allegations formed the basis of the Show Cause Notice that was initially issued to the company, and the recent order confirms the demand arising from these alleged violations.
Company's Response
Finolex Cables has strongly contested the GST order, describing it as "ill-considered and issued without application of mind." The company has announced its decision to file an appeal before the Appellate Authority to challenge the order.
The company made this disclosure in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and the SEBI Master Circular dated January 30, 2026.
Financial Impact Assessment
Despite the substantial amount involved, Finolex Cables has stated that the tax demand of ₹29.46 crores "is not having major impact on operations of the company." This suggests that the company believes it has adequate financial resources to manage the situation while pursuing its legal remedies.
The disclosure was made to both BSE Limited and National Stock Exchange of India Limited as part of the company's regulatory compliance obligations, ensuring transparency with stakeholders regarding this significant development.
Historical Stock Returns for Finolex Cables
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.14% | -4.15% | -12.70% | -2.81% | -10.03% | +105.18% |
How might this GST dispute affect Finolex Cables' credit rating and borrowing costs if the appeal process extends beyond the current fiscal year?
Could this case set a precedent for increased GST scrutiny on other cable manufacturing companies with similar business models?
What impact will the potential cash flow requirements for this dispute have on Finolex Cables' planned capital expenditure and expansion projects?
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