Jubilant Ingrevia Gets GST Demand Order Confirming Tax and Penalty for FY 2017-18
Jubilant Ingrevia Limited's Gajraula facility received an appeal order from the Additional Commissioner, Grade 2 (Appeals), State Tax, Moradabad, confirming a GST demand of Rs. 1,01,84,776 plus an equal penalty and applicable interest for FY 2017-18, related to alleged wrong availment of Transitional Input Tax Credit under Section 16 of the GST Act(s), 2017. The company intends to file an appeal before the GSTAT and has stated there is no material financial or operational impact from the order.
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Jubilant Ingrevia Limited's Gajraula facility has received an appeal order from the Additional Commissioner, Grade 2 (Appeals), State Tax, Moradabad, Uttar Pradesh, confirming a Goods and Services Tax (GST) demand pertaining to the financial year 2017-18. The event occurred on April 4, 2026 at 19:09 pm (IST), with the order received on 04/05/2026. The demand pertains to the alleged wrong availment and utilisation of Transitional Input Tax Credit, in alleged violation of Section 16 of the GST Act(s), 2017. The company disclosed this development pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
GST Demand Details
The appeal order, bearing reference number ZD0905260254575 and dated 04/05/2026, was passed by the Additional Commissioner, Grade 2 (Appeals), State Tax, Moradabad. The confirmed demand for FY 2017-18 is summarised below:
| Parameter: | Details |
|---|---|
| Authority: | Additional Commissioner, Grade 2 (Appeals), State Tax, Moradabad, Uttar Pradesh |
| Order Reference No.: | ZD0905260254575 |
| Order Date: | 04/05/2026 |
| Order Received On: | 04/05/2026 at 19:09 pm (IST) |
| Financial Year: | 2017-18 |
| Tax Demand: | Rs. 1,01,84,776/- |
| Penalty: | Rs. 1,01,84,776/- |
| Interest: | As Applicable |
| Nature of Violation: | Alleged wrong availment and utilisation of Transitional Input Tax Credit under Section 16 of the GST Act(s), 2017 |
Nature of the Alleged Contravention
The demand arises from the alleged wrong availment and utilisation of Transitional Input Tax Credit by the company's Gajraula unit, which the tax authority contends is in violation of Section 16 of the GST Act(s), 2017. The order in appeal confirms both the tax demand and an equivalent penalty amount, in addition to applicable interest charges.
Company's Response and Financial Impact
Jubilant Ingrevia has stated that it has a strong case to defend on merits and is in the process of taking necessary action to file an appeal before the GST Appellate Tribunal (GSTAT) against the impugned order. The company has also clarified that there is no material financial or operational impact arising from this order. The disclosure was made in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026, updated on January 30, 2026.
Historical Stock Returns for Jubilant Ingrevia
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.88% | +4.04% | +22.53% | +13.41% | +7.26% | +78.21% |
How might the outcome of Jubilant Ingrevia's appeal before the GST Appellate Tribunal set a precedent for other companies facing similar Transitional Input Tax Credit disputes from the 2017-18 transition period?
Are there other manufacturing facilities of Jubilant Ingrevia or peer specialty chemical companies that could face comparable GST transitional credit demands, potentially creating a broader industry-wide liability?
Given that the GSTAT is still being constituted in many states, what timeline can Jubilant Ingrevia realistically expect for resolution of this appeal, and how might prolonged uncertainty affect investor sentiment?
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