Schneider Electric Infrastructure Receives ₹3.25 Crore GST Demand Order from Tax Authorities

Schneider Electric Infrastructure Limited has received a significant GST demand order from tax authorities in Vadodara, Gujarat, relating to input tax credit discrepancies for the Financial Year 2021-22. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations.

GST Demand Order Details

The demand order was issued by the Office of Additional Commissioner, Vadodara-I, Vadodara, CBIC, Gujarat. The order pertains to excess claim of Input Tax Credit (ITC) and non-reversal of inadmissible/unclaimed ITC under Section 73(9) of the CGST Act, 2017 read with Section 20 of the IGST Act, 2017.

Component	Tax Amount (₹)	Penalty (₹)	Interest
IGST	3,08,62,082	30,86,207	At appropriate rate on tax amount
CGST	8,26,710	82,671	At appropriate rate on tax amount
SGST	8,26,710	82,671	At appropriate rate on tax amount
Total	3,25,15,502	32,51,549	As applicable

Company's Response and Impact Assessment

Schneider Electric Infrastructure has stated that it is evaluating appropriate legal remedies to address the demand order. The company received the order at 04:22 p.m. (IST).

Regarding the financial impact, the company has clarified that there is no material impact on its financial, operational, or other routine business activities. The impact will be limited to the extent of liability as per the order issued by the tax authorities.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The company provided all required details as per sub-para 20 of Para A of Part A of Schedule III of the listing regulations.

Parameter	Details
Authority	Office of Additional Commissioner, Vadodara-I, Vadodara, CBIC, Gujarat
Nature of Action	GST Demand Order for excess ITC claim and non-reversal issues
Financial Year	2021-22

The company secretary and compliance officer, Sumit Goel, signed the regulatory filing submitted to both NSE and BSE. This development represents a significant tax-related matter for the electrical equipment manufacturer, though the company maintains that it will not materially affect its ongoing business operations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.34%	+5.13%	+1.45%	-1.79%	-4.38%	+808.48%

Regulatory Approval for Stake Acquisition in Schneider Electric Infra

A recent development has emerged regarding Schneider Electric Infra , as regulatory authorities have granted approval for a stake acquisition in the company. While this corporate action doesn't directly impact the company's financial fundamentals, it may have significant implications for its ownership structure and future operations.

Expert Review

This article has been reviewed by Shriram Shekhar, an expert in corporate actions and geopolitics. The approval of stake acquisition by regulatory authorities is a noteworthy event that investors should be aware of, as it could potentially influence Schneider Electric Infra's strategic direction and governance.

Implications for Investors

Although this news doesn't immediately affect the company's financial performance, shareholders should remain vigilant and monitor subsequent announcements. Any changes in company strategy or leadership that may result from this stake acquisition could have long-term impacts on the company's operations and value.

Conclusion

Investors are advised to stay informed about further developments related to this stake acquisition. It will be crucial to assess how this change in ownership might affect Schneider Electric Infra's business model, market position, and overall long-term prospects. As more details emerge, stakeholders should carefully evaluate the potential consequences for their investment strategies.