MCX Faces GST Appeal Rejection Over ₹3.11 Cr ITC Claim

MCX has received an unfavorable appeal order from the Goods and Services Tax (GST) Department on December 11, 2025, regarding a disputed input tax credit claim. The Commissioner (Appeal) has rejected the company's appeal and upheld the original order passed by the Joint Commissioner, CGST & Cx, Mumbai East Commissionerate.

GST Appeal Details

The appeal order pertains to the alleged wrongful availment of Input Tax Credit (ITC) by the company. The GST Department has disallowed the ITC claim and imposed significant financial penalties on the exchange operator.

Parameter	Details
ITC Amount Disallowed	₹3,10,51,914.00
Period Covered	FY 2018-19 to FY 2021-22
Penalty Imposed	Equivalent to disallowed amount
Additional Charges	Interest at appropriate rate
Appeal Order Date	December 11, 2025

Regulatory Compliance

MCX has filed this disclosure under Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company noted that this appeal order is in continuation of an earlier intimation made to BSE on January 27, 2025, through letter reference number MCX/SEC/2474.

Financial Impact Assessment

The company has assessed the financial implications of the GST Department's order and provided clarity on its operational impact.

Impact Category	Assessment
Financial Impact	Limited to ITC disallowance and penalty
Operational Activities	No material impact
Other Business Activities	No material impact
Total Financial Exposure	₹3,10,51,914.00 plus penalty and interest

Company Response

MCX has indicated that it is currently in the process of responding to the appeal order received from the GST Department. The company has maintained transparency by promptly disclosing the development to the stock exchanges as required under regulatory guidelines.

The exchange operator has emphasized that despite the adverse order, there is no material impact on the company's financial, operational, or other activities. The financial impact is specifically limited to the extent of the GST Department's disallowance of the ITC claim and the associated penalties and interest charges.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.79%	-0.31%	+7.58%	+28.94%	+84.47%	+538.61%

Multi Commodity Exchange of India Limited (MCX) has reported a robust financial performance for the second quarter, with significant growth in revenue and profitability. The exchange also introduced new products and faced a technical issue during the period.

Financial Highlights

MCX's financial results for Q2 show strong growth across key metrics:

Metric	Q2	YoY Growth
Consolidated Revenue	₹401.00 crores	29%
EBITDA	₹270.00 crores	32%
Profit After Tax	₹197.00 crores	29%
Average Daily Turnover (ADT)	₹4.11 lakh crores	103%

The exchange's revenue from options trading stood at ₹223.00 crores, while futures contributed ₹114.00 crores for the quarter.

Market Activity and Product Launches

MCX witnessed a significant uptick in market activity, with the Average Daily Turnover (ADT) doubling to ₹4.11 lakh crores from ₹2.02 lakh crores in the previous year. This increase reflects growing market participation and liquidity across various commodity segments.

The exchange expanded its product offerings during the quarter, launching:

Monthly options on silver contracts
Fresh futures contracts in cardamom and nickel
MCX BULLDEX index options in October

These new products aim to provide more diverse trading and hedging opportunities for market participants.

Technical Disruption

On October 28, MCX experienced a technical issue that delayed trading until 1:25 PM. The exchange had to shift operations to its disaster recovery site due to predefined parameter limits in gateway services related to unique client codes. MCX has stated that steps have been taken to address these constraints and prevent similar issues in the future.

Membership and Participation Growth

MCX added 17 new members during the year, indicating growing interest in commodity trading. The exchange reported increased participation in bullion options following the shift from bimonthly to monthly expiry cycles.

Outlook

Praveena Rai, Managing Director and CEO of MCX, expressed optimism about the exchange's growth trajectory. She stated, "We are positive. We are optimistic. A lot of business actions on the ground, product suite enhancements. We've spoken about all of that. So, I think we are moving across various axes here."

The exchange plans to continue expanding its product suite and enhancing technology infrastructure to support market growth and reinforce its position as India's leading commodity derivatives exchange.

As MCX navigates through its growth phase, it faces both opportunities and challenges. The recent technical disruption highlights the need for robust systems to support increasing market activity. Meanwhile, the introduction of new products and growing institutional participation suggest potential for further market expansion in the coming periods.