GST authority confirms demand over alleged ineligible input tax credit; company to contest
Supertex Industries has received an order from the Additional Commissioner, Central GST & Central Excise Commissionerate, Surat.
By ScoutQuest · · 1 min read
- Tax demand
- ~Rs. 9.2 crore plus interest
- Penalty
- ~Rs. 9.2 crore
- Order authority
- Additional Commissioner, Central GST & Central Excise Commissionerate, Surat
What happened
- The company received an order from the Additional Commissioner, Central GST & Central Excise Commissionerate, Surat, on 25th October, 2026.
- It is an Order in Original that confirms the demand proposed in an earlier Show Cause Notice.
- The stated ground is availment of ineligible input tax credit (ITC).
What ITC means, simply
- GST paid on purchases can usually be set off against the GST a business collects on its sales. That set-off is the input tax credit.
- If the tax authorities conclude that credit was taken where it was not allowed, they demand that amount back.
What it means for the company
- The disclosed impact is a tax demand of ~Rs. 9.2 crore plus interest, and a penalty of ~Rs. 9.2 crore.
- The penalty is shown as a separate figure equal to the tax amount.
What the company has said
- It is reviewing the order and will be contesting the demands.
- That means the matter is being taken up further rather than accepted as it stands.
What to watch
- The outcome of the company's challenge to the order.
- How the demand and penalty are treated in the accounts, and any cash outflow if the demand is upheld.
A GST demand of this size, alongside an equal penalty, is the kind of item investors typically track as a contingent liability rather than an immediate hit to operations. The disclosure sets out the amount and the company's stated position; the final position depends on how the challenge proceeds.
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More numbers
- Tax demand in GST orderRs. 9,20,07,065/-
- Penalty imposed in GST orderRs. 9,20,07,065/-
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