Schneider Electric Infrastructure Limited received an appeal order from the Commissioner, CGST (Appeals), Noida, upholding a significant portion of a Goods and Services Tax (GST) demand related to wrongful availment of transitional credits. The appellate authority confirmed demands totaling ₹9,57,641 for ineligible CENVAT credits and ₹2,58,549 for input tax credit on hotel booking facilitation services lacking business nexus, while imposing a revised penalty of ₹12,16,190 under Sections 122 and 74 of the CGST Act, 2017. The company stated there is no material impact on its financials or operations beyond this specific liability and is evaluating appropriate legal remedies.

Regulatory Proceedings

The order, vide number NOI-CGST-001-APPL-324-2026-27 dated July 29, 2026, was received by the company on July 30, 2026. This development follows a demand notice issued earlier by the Joint Commissioner, Noida Tower II, alleging wrong availment of excess Input Tax Credit in TRANS1 for financial year 2017-18. The initial proceedings cited wrongful transition of ineligible CENVAT credit through Form GST TRAN-1 under Section 140 of the CGST Act, 2017.

Appeal Outcome Details

The Commissioner (Appeals) partly allowed the company’s appeal. While the authority set aside a demand of ₹2,83,584 relating to transit invoices recorded on July 31, 2017, it upheld the core allegations regarding specific cesses and service credits.

The department contended that the Education Cess, Secondary & Higher Education Cess, and Krishi Kalyan Cess were not eligible for transition under GST. Additionally, the input tax credit claimed for hotel booking facilitation services was deemed inadmissible due to a lack of evidence establishing a business nexus. The company disclosed this matter pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Schneider Electric Infrastructure Limited announced that shareholders have approved a material related party transaction with Schneider Electric IT Business India Private Limited. The resolution was passed via a postal ballot process, with 99.98% of the valid votes cast in favour. The approval permits the company to proceed with specific transactions involving the related entity, a move critical for its operational continuity and strategic alignment.

The remote e-voting commenced on June 4, 2026, and concluded on July 3, 2026. A total of 647 shareholders participated, representing 1,59,45,776 equity shares. The scrutinizer, Mr. Anirudh Grover of M/s Sanjay Grover & Associates, validated the results, confirming the resolution's passage on the last date of voting.

Voting Results Summary

The outcome of the postal ballot reflects strong shareholder support for the proposed transaction. Public institutions and non-institutional shareholders actively participated, while promoters did not cast any votes.

Detailed Breakdown by Category

The voting pattern varied across different shareholder categories. Public institutions showed unanimous support, while public non-institutions accounted for the dissenting votes.

The company disclosed that the total equity paid-up share capital as on the cut-off date of May 29, 2026, was INR 47,82,08,070, divided into 23,91,04,035 equity shares of INR 2 each. The results have been submitted to the National Stock Exchange of India Ltd and BSE Limited in compliance with Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.