Jubilant Ingrevia to Appeal ₹6.63 Cr GST Demand Over ITC Row

Jubilant Ingrevia Gets Tax Demand: A Legal Tug of War?

So here’s the latest buzz from the compliance corner—Jubilant Ingrevia has found itself in a bit of a spot with the GST department. If you’re thinking, "What now?", well, the company has been slapped with a notice under Section 73 of the CGST Act, 2017. That came from none other than the Joint Commissioner in Pune-II, Maharashtra.

Let’s break it down.

This demand is related to the financial year 2020-21. And the amount in question? A hefty Rs 6.63 crore, which includes a 10% penalty. The issue, according to the authorities, is that Jubilant Ingrevia allegedly claimed Input Tax Credit (ITC) it wasn’t entitled to. This supposedly violates Section 16 of the CGST Act.

Now if you're scratching your head over what Section 16 is—in simple terms, it's the part of the GST law that defines who can claim ITC and under what conditions. And if a company steps outside those lines? The credit gets reversed, and penalties get added. That’s what the tax department believes has happened here.

But hang on—Jubilant isn’t taking this lying down. In their official filing, they’ve made it clear that they disagree with the order. They think the demand is off-base, and they plan to challenge it through an appeal.

They also put this out there under Regulation 30 of SEBI’s LODR rules, just to make sure their investors and the public are in the loop. That’s the rule that makes it mandatory for listed companies to report big developments.

So, what now? Well, the ball is in the legal court. Jubilant Ingrevia is gearing up for a legal fight, and depending on how this goes, it could set a tone for how similar cases get treated in the future. Something worth watching, especially if you follow compliance or corporate law trends.

Let’s see how this one plays out.