Schneider Electric Infrastructure faces tax demand over ITC claims

Schneider Electric Infrastructure Limited announced on December 16, 2025, that it received a demand order dated December 15, 2025, from the Office of Additional Commissioner, Vadodara-I, CBIC, Gujarat. The order pertains to an alleged excess claim of Input Tax Credit (ITC) and non-reversal of inadmissible/unclaimed ITC for the financial year 2021-22.

The demand order, issued under Section 73(9) of the CGST Act, 2017, and Section 20 of the IGST Act, 2017, totals INR 3,25,15,502 in tax and INR 32,51,549 in penalty, plus interest. Specifically, the IGST component is INR 3,08,62,082 with a penalty of INR 30,86,207. CGST and SGST each account for INR 8,26,710 in tax and INR 82,671 in penalty.

The company stated it is evaluating appropriate legal remedies. Schneider Electric Infrastructure anticipates no material impact on its financials, operations, or other routine business activities, noting that the impact will be limited to the extent of liability as per the order.