SRF Limited announced that Joint Commissioner, CGST & Central Excise, Vadodara-II in its order stated that the Company has procured raw materials from EoU/SEZ suppliers under Advance Authorization and was not eligible to claim refund of IGST on exports against such advance authorizations between October, 2017 to March, 2022. On the above grounds, the department has raised a Demand order for Tax of ~INR 852.3 million. In addition demand for penalty equivalent to the tax amount and applicable interest was also made.

Penalty imposed under Section 74(11) of the Central Goods and Services Tax Act, 2017- INR 852.3 million. Date of receipt of direction or order: 16 January 2025. Based on legal advice, the management is confident that the demand is not legally tenable and the same would be contested before the appropriate legal forums.