HCL Infosystems Receives ₹4.38 Crore GST Demand Order for FY 2021-22

HCL Infosystems Limited has received a significant GST demand order totaling ₹4.38 crores from tax authorities, relating to alleged discrepancies in GST return filings for the financial year 2021-22. The company disclosed this development through a regulatory filing, pursuant to SEBI listing regulations.

GST Demand Order Details

The Order-in-Original was issued by the Joint Commissioner, Central Goods Service Tax, Noida, under the provisions of the Central Goods and Services Tax Act, 2017. The demand order addresses an alleged mismatch between the turnover reported by the company in Form GSTR-3B and the details reflected in Form GSTR-7.

Component	Amount	Legal Provision
Tax Demand	₹2.27 crores	CGST Act 2017
Interest	₹1.89 crores	Section 50 of CGST Act 2017
Penalty	₹0.22 crores	Section 73 of CGST Act 2017
Total Demand	₹4.38 crores	FY 2021-22

Company's Response and Position

HCL Infosystems has strongly contested the demand order, maintaining that it is not sustainable in law. The company attributes the alleged discrepancy primarily to statutory timing differences and reconciliation issues between various GST returns, emphasizing that there was no suppression of facts, misstatement, or intent to evade tax.

The company has stated that it duly discharged its applicable tax liabilities in the relevant periods and believes it has good grounds on merits as well as on legal and procedural aspects. Management is currently evaluating and examining its options for appropriate legal remedies in accordance with the law.

Financial and Operational Impact

Regarding the potential impact on business operations, HCL Infosystems has indicated that it does not expect any material adverse impact on its financial position or operations at this stage. The company plans to challenge the order, citing timing differences.

Regulatory Compliance

The disclosure was made under Regulation 30 read with sub-para 20 of Para A of Part A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Parameter	Details
Authority	Joint Commissioner, Central GST, Noida
Nature of Action	Demand Order
Violation Alleged	Mismatch between GSTR-3B and GSTR-7
Financial Year	2021-22

The company continues to maintain its position that the demand lacks merit and plans to pursue appropriate legal channels to address the matter.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.15%	+0.88%	-2.35%	-19.03%	-13.96%	+55.25%

HCL Infosystems Limited , a prominent player in the Indian IT sector, has recently undergone a significant change in its credit rating status. CARE Ratings Limited, a leading credit rating agency in India, has withdrawn the credit rating assigned to HCL Infosystems for its bank facilities. This action was taken following a request made by the company via email on November 12, 2025.

Key Points

Withdrawal Request: HCL Infosystems initiated the process by requesting the withdrawal of its credit rating.
Compliance: CARE Ratings confirmed that the withdrawal is in compliance with its established withdrawal policy.
Announcement: The rating agency will be announcing this withdrawal through a press release.
Usage Restriction: HCL Infosystems is required to cease using the withdrawn ratings for any purpose moving forward.

Financial Overview

While the credit rating withdrawal is a significant development, it's important to consider the company's financial position. Based on the most recent balance sheet data available, here's a snapshot of HCL Infosystems' financial health:

Financial Metric	Current Year (2025-03)	1 Year Ago (2024-03)	Change
Total Assets	₹222.2 crore	₹230.3 crore	-3.52%
Current Assets	₹64.9 crore	₹74.5 crore	-12.89%
Fixed Assets	₹1.7 crore	₹2.5 crore	-32.00%
Total Liabilities	₹514.8 crore	₹500.9 crore	2.77%
Shareholders' Capital	-₹292.6 crore	-₹270.7 crore	8.09%

The balance sheet reveals some challenges faced by HCL Infosystems:

Declining Assets: The company's total assets have decreased by 3.52% year-over-year.
Negative Shareholders' Capital: The negative value indicates significant financial stress.
Increasing Liabilities: Total liabilities have increased by 2.77%, further straining the company's financial position.

Implications

The withdrawal of the credit rating at HCL Infosystems' request, coupled with the company's current financial position, may raise questions among investors and stakeholders. While the reasons behind the rating withdrawal request are not explicitly stated, it's often a step taken by companies undergoing significant changes in their financial structure or strategy.

Investors and stakeholders may closely monitor future announcements from HCL Infosystems for any strategic shifts or restructuring plans that may follow this development. The company's ability to manage its liabilities and improve its asset base could be crucial in the coming months.

As the technology landscape continues to evolve rapidly, HCL Infosystems' next moves will be important in determining its path forward in the competitive IT sector.