Arvind Fashions Limited has disclosed the receipt of a significant Demand Order from the Joint Commissioner of Central Tax, Bengaluru. The order demands payment of ₹5.41 crore, comprising Input Tax Credit (ITC) disallowed for Assessment Years 2019-2020 and 2020-2021. The disallowed credit relates to ITC availed allegedly in contravention of Section 16(2) of the CGST Act. The company intends to immediately challenge these orders, expecting no material financial or operational impact.
Disclosure of Tax Assessment Order Received
Arvind Fashions Limited has officially informed the stock exchanges regarding the receipt of a Demand Order from the Joint Commissioner of Central Tax, Bengaluru North Commissionerate. The communication was officially received on March 30, 2026.
Details of the Tax Demand
The core issue pertains to the disallowance of Input Tax Credit (ITC) claimed by the company for the Assessment Years 2019-2020 and 2020-2021. The total demand issued is quantified as follows:
- Total ITC Demand: ₹5,40,75,947/- (Rupees Five Crore Forty Lakh Seventy-Five Thousand Nine Hundred Forty-Seven only).
- Basis of Demand: The ITC was reportedly availed in contravention of Section 16(2) of the CGST Act, 2017.
- Interest Imposition: A demand for interest on this ITC amount has also been raised as detailed under Section 50(3) of the CGST Act, 2017.
- Penalty Imposed: A corresponding penalty equal to the demanded ITC amount, ₹5,40,75,947/-, was also stipulated in the order.
Company Response and Outlook
Arvind Fashions Limited has confirmed its intent to actively contest the entire demand. The company is currently in the process of filing an appeal before the appropriate forum within the mandated timelines.
Crucially, the company maintains that it possesses adequate factual and legal grounds to successfully challenge the order. Consequently, management does not anticipate any significant adverse impact on the company’s financial standing, operations, or other business activities as a result of this demand at this preliminary stage.
Source: BSE
