Tax Demand Hits Refex Industries With ₹89.3 Million Order From GST Commissionerate

Refex Industries Ltd has received a demand order from the GST Commissionerate, totaling ₹89.3 million, including tax, interest, and penalties. The order pertains to alleged discrepancies in Input Tax Credit (ITC) claims across multiple financial years and has prompted the company to initiate an appeal process.

 

Key Highlights From The Tax Action

 

- The demand was issued by the Joint Commissioner of Central Tax, Bengaluru West, covering FY 2019–20 to FY 2020–21.

- The ₹89.3 million figure includes disallowed ITC, accrued interest, and penalty charges under GST compliance norms.

- Refex Industries has stated that the demand is not maintainable and intends to challenge the order within the prescribed legal timeframe.

- Management asserts that the financial impact is not material and will not affect the company’s operations or business continuity.

 

Historical Context And Related Proceedings

 

- Refex has previously faced similar tax scrutiny, including a ₹29.31 crore demand from CGST Bhopal in March 2025 and a ₹10.38 crore order from Rajasthan authorities in December 2024.

- The company has consistently maintained that its ITC claims were legitimate and has pursued legal remedies in each case.

 

Investor Implications

 

While the demand adds to Refex’s compliance burden, the company’s proactive legal stance and stable financials suggest limited disruption. Stakeholders will monitor the outcome of the appeal and any potential precedent it sets for future GST assessments.

 

Sources: Refex.co.in, Rediff MoneyWiz, Financesaathi.com, SEBI LODR Filings.