SRF Limited has received a demand for ITC (Input Tax Credit) reversal amounting to ₹15.76 Crores (Approx.). The demand pertains to exempted supply and non-filing of returns by a supplier. The company is confident that the demand is not legally tenable and intends to contest it.
Details of the Demand
SRF Limited has been notified of a demand for Input Tax Credit (ITC) reversal by the Joint Commissioner, CGST Commissionerate, Dehradun. The demand totals ₹15.76 Crores (Approx.) and includes applicable interest. A penalty equivalent to the tax has also been imposed. This notification was received on 29th December 2025.
Basis of the Demand
The demand for ITC reversal is based on two grounds: (a) exempted supply and (b) non-filing of return by a supplier. Specifically, authorities viewed the company’s slump sale of a business unit as an exempted supply, requiring ITC reversal. Further, reversal of ITC was also demanded due to the supplier’s non-compliance.
Company’s Response
SRF Limited, based on legal advice, believes the demand is not legally sustainable. The company intends to contest the demand through appropriate legal channels.
Source: BSE
