Maithan Alloys faces significant GST demand, penalties for alleged ITC refund error

Maithan Alloys Limited announced on December 13, 2025, that it has received an order from the assistant commissioner, ASANSOL-II, under Section 73 of the CGST Act, 2017. The order, dated December 4, 2025, and received on December 12, 2025, demands the repayment of an erroneously claimed refund of ITC of Compensation Cess amounting to INR 97,51,499.10.

Additionally, the company faces an applicable interest charge of INR 53,90,842 and a penalty of INR 9,75,150. The total aggregate amount claimed in the order is INR 1,61,17,491.10. The alleged violation pertains to an excess claim of refund in respect of ITC (Compensation Cess) under Section 54 of the CGST Act, 2017.

Maithan Alloys Limited stated that it is currently evaluating its options to contest the order issued by the CGST Authority. The company has informed both the Calcutta Stock Exchange and the National Stock Exchange of India regarding this development as per SEBI regulations.