Schneider Electric Infrastructure Limited has received an adjudication order from GST authorities concerning FY 2022-23. The order confirms tax demands and penalties totaling approximately ₹3,97,40,134 for alleged non-payment of IGST on export services, ineligible input tax credit, non-payment of GST for SEZ supplies, and non-reversal of ITC. The company is evaluating the order and appropriate legal remedies. While a proposed demand of ₹67,316 was dropped, a penalty of ₹35,18,008 has been imposed.
GST Adjudication Order Issued
Schneider Electric Infrastructure Limited announced on September 9, 2026, that it has received an Order-in-Original from the GST Authorities. This order, pertaining to the financial year 2022-23, stems from GST audit proceedings and addresses several alleged non-compliances.
Key Tax Demands and Penalties
The adjudication order confirms the following tax demands and penalties against the company:
- A demand of INR 2,37,99,374 for alleged non-payment of IGST on export of services, attributed to non-receipt of export proceeds within the prescribed period.
- A demand of INR 1,06,37,269 for alleged availment of ineligible input tax credit.
- A demand of INR 3,79,519 for alleged non-payment of GST on supplies made to SEZ units without the prescribed endorsement.
- A demand of INR 3,63,915 for alleged non-reversal of input tax credit related to supplier credit notes.
- A proposed demand of INR 67,316 relating to alleged duplicate availment of ISD credit has been dropped by the authority.
- Interest has been directed to be recovered at applicable rates.
- A penalty of INR 35,18,008 has been imposed under Section 122(2)(a) read with Section 73(9) of the CGST Act, 2017.
Company’s Stance and Next Steps
The company is currently evaluating the order and exploring appropriate legal remedies. Schneider Electric Infrastructure Limited has stated that there is no material impact on its financials, operations, or other routine business activities, and the impact will be limited to the extent of the liability as per the order.
Source: BSE
