Arvind Fashions Receives ₹5.4 Crore ITC Demand; Plans Appeal
Arvind Fashions Limited received a demand order for ₹5.41 crore regarding ITC disallowance for FY20 and FY21. The company plans to appeal the order, which includes a penalty of ₹5.41 crore, and expects no financial impact.
The demand of ₹5.41 crore is material. While the company plans to appeal and expects no financial impact, the uncertainty and potential legal costs associated with the appeal introduce a medium level of impact.
The company has received a significant tax demand, which is a negative event. However, the company's intention to appeal and its belief in having strong grounds to contest the demand, along with the expectation of no financial impact, balances the sentiment.
Arvind Fashions Limited has received a demand order from the Joint Commissioner of Central Tax, Bengaluru North Commissionerate, for Input Tax Credit (ITC) amounting to ₹5,40,75,947/- (IGST ₹5,40,75,947/-). This demand pertains to the disallowance of ITC for Assessment Years 2019-2020 and 2020-2021, citing contravention of Section 16(2) of the CGST Act, 2017. Additionally, interest on the ITC demand has been levied as per Section 50(3) of the CGST Act, 2017. The company has also been penalized ₹5,40,75,947/-. The demand order was received on March 30, 2026. Arvind Fashions Limited intends to challenge these orders by filing an appeal before the appropriate forum within the prescribed timelines. The company believes it has strong factual and legal grounds to contest the demand and therefore expects no financial, operational, or other impact on its activities.
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Arvind Fashions Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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