The CGST appellate authority has upheld a demand of ₹5.04 lakh and an equal penalty against Schneider Electric Infrastructure over transitional input tax credit claimed for FY 2017-18. Interest will be payable as applicable under law, taking the quantified amount to ₹10.08 lakh plus interest.
BKK Bureau, New Delhi | 18 October 2026 | 4:57 PM IST
Schneider Electric Infrastructure Limited has disclosed that the Appellate Authority in the Kolkata CGST jurisdiction has rejected the company’s appeal in a dispute involving transitional input tax credit claimed under the Goods and Services Tax regime. The authority upheld the original adjudication order and confirmed a tax demand of ₹5,04,071 along with an equal penalty.
The company made the disclosure to the National Stock Exchange of India on October 18, 2026, following the appellate order dated October 17. The matter was decided by the Joint Commissioner, CGST and Central Excise, Kolkata Appeal-I Commissionerate, through Order-in-Appeal No. 302/CGST/Kol-North/2026.
According to the filing, the appellate authority upheld the demand under Section 74(1) of the Central Goods and Services Tax Act, 2017. It also confirmed the consequential liability for interest under Section 50(3), to the extent payable in accordance with law, and a penalty of ₹5,04,071 under Section 122(2)(b) and other relevant provisions of the Act.
The quantified amount involved is ₹10,08,142, comprising the ₹5,04,071 tax demand and the equivalent penalty, in addition to applicable interest. The dispute relates to transitional input tax credit claimed by Schneider Electric Infrastructure under Form GST TRAN-1 for financial year 2017-18.
The company said the authorities considered three invoices or tax-paying documents connected with the credit claim. According to the order details disclosed by Schneider Electric Infrastructure, the documents were recorded in the company’s books on July 31, 2017, which the authorities held was beyond the prescribed period under Section 140(5) of the CGST Act. The filing also states that no extension of the prescribed period had been granted by the competent authority.
Schneider Electric Infrastructure said the appellate authority upheld the findings of the adjudicating authority regarding the inadmissibility of the transitional credit and the related interest and penalty. The company stated that there would be no material impact on its financials, operations or other routine business activities, with the impact limited to the liability arising under the order.
The company is evaluating the order and an appropriate legal remedy, according to the exchange disclosure. The filing was signed by Sumit Goel, the company’s secretary and compliance officer, and identified Gurugram as the place of the disclosure.
Why it matters
- The order confirms a quantified liability of ₹10.08 lakh plus applicable interest for Schneider Electric Infrastructure in a legacy transitional-credit dispute.
- The company has described the impact on its financials and operations as not material while it evaluates further legal action.
Why it matters
The disclosure gives investors and other stakeholders a clear update on a legacy GST dispute, the amount upheld by the appellate authority and the company’s stated assessment of its business impact.
Source: National Stock Exchange of India
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