Finolex Cables hit with ₹220m tax demand over GST mismatches

Finolex Cables Limited announced on December 23, 2025, that it has received an order from the commercial tax officer, ward-5, Chandigarh, dated December 20, 2025. The order confirms a demand under a show cause notice related to alleged GST mismatches on input tax credit (ITC) and other issues for the financial year 2021-22. The company received this order via email on December 22, 2025.

The total tax demand amounts to ₹22,00,51,844/-, which includes ₹11,82,52,691/- in tax, ₹8,99,23,883/- in interest, and ₹1,18,75,270/- in penalties. The alleged violations stem from the company taking credit for which its supplier uploaded harmonized system of nomenclature (HSN) codes different from those used by Finolex Cables.

Despite the substantial amount, Finolex Cables Limited stated that this tax demand is not expected to have a major impact on the company's operations. The company also indicated that it has the option to file an appeal before the appellate authority to challenge the order.