Schneider Electric Infra loses CGST appeal, ₹3.25 Cr demand upheld
- CGST Appeals Authority upheld ₹3.25 crore tax demand against Schneider Electric Infrastructure
- Penalty of ₹0.32 crore also confirmed for FY22 Input Tax Credit discrepancies
- Company states no material impact on financials or operations from the order
- Schneider Electric is evaluating legal remedies following the appeal dismissal
*this image is generated using AI for illustrative purposes only.
Schneider Electric Infrastructure Ltd has received an order from the Commissioner (Appeals), CGST & Central Excise, Vadodara, upholding a tax demand of ₹3.25 crore and a penalty of ₹0.32 crore. The appellate authority disallowed the company’s appeal against an earlier order regarding alleged excess Input Tax Credit (ITC) claims for FY22.
The order, dated September 28, 2026, confirms the liability originally imposed by the Additional Commissioner, CGST & Central Excise, Vadodara-I Commissionerate, in December 2025. The dispute centers on discrepancies between ITC claimed in Form GSTR-3B and that reflected in Forms GSTR-2A/2B under heads such as "All Other ITC" and "Import of Goods".
Regulatory action and financial impact
The Appellate Authority held that Schneider Electric failed to satisfactorily substantiate or reconcile the disputed differences with corroborative documentary evidence. Consequently, the demand was upheld under Section 73(9) of the CGST Act, 2017, along with consequential interest and penalty.
The company stated that there is no material impact on its financials, operations, or routine business activities. The financial impact will be limited to the extent of the liability as per the order. Schneider Electric is currently evaluating the order and appropriate legal remedies.
| Particulars | Details |
|---|---|
| Authority | Commissioner (Appeals), CGST & Central Excise, Vadodara |
| Order Date | September 28, 2026 |
| Tax Demand | ₹3.25 crore |
| Penalty | ₹0.32 crore |
| Period Under Dispute | FY22 |
| Reason | Excess ITC claim vs GSTR-2A/2B |
What the numbers show
The total confirmed liability stands at approximately ₹3.57 crore (tax plus penalty). This amount represents a specific regulatory exposure for FY22 rather than a broader operational issue, as the company explicitly noted no material impact on ongoing business activities. The penalty component constitutes roughly 10% of the principal tax demand, indicating a standard statutory consequence for non-compliance rather than an aggravated fraud charge.
Historical Stock Returns for Schneider Electric Infra
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.98% | +2.57% | +6.12% | +50.79% | +55.42% | +1,015.35% |
Will Schneider Electric Infrastructure Ltd proceed to the High Court or Appellate Tribunal, and what is the expected timeline for those proceedings?
How might this adverse ruling influence the company's internal GST compliance protocols and ITC reconciliation processes for FY23 and beyond?
Are there indications that tax authorities are intensifying scrutiny on GSTR-3B versus GSTR-2A/2B mismatches across the broader industrial infrastructure sector?
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