Schneider Electric Infrastructure Appeal Rejected in FY18 ITC Case, ₹10.08 Lakh Liability Upheld

Schneider Electric Infrastructure's appeal against a FY18 input tax credit claim was rejected by the Joint Commissioner, CGST & CX, Kolkata, upholding a ₹5.04 lakh penalty and bringing the total quantified liability to ₹10.08 lakh plus interest. ScanX reported the order on October 18, 2026.

Schneider Electric Infrastructure's FY18 ITC Dispute

The dispute stems from transitional input tax credit of ₹5.04 lakh claimed by the company under Form GST TRAN-1 for FY18. Authorities alleged that three invoices were recorded in books on July 31, 2017, exceeding the prescribed period under Section 140(5) of the CGST Act, 2017, without an extension granted by a competent authority.

The appellate authority confirmed the findings of the adjudicating authority regarding the inadmissibility of the credit. The order upholds the demand for the principal amount, consequential interest, and the penalty imposed under Section 122(2)(b) of the CGST Act. The company received knowledge of the order on October 17, 2026.

Schneider Electric Infrastructure stated that there is no material impact on its financials, operations, or routine business activities. The company noted that the impact is limited to the extent of the liability specified in the order. Management is currently evaluating the order and considering appropriate legal remedies.

Schneider Electric Infrastructure's Kolkata Expansion Plans

According to akta.pro company records, Schneider Electric Infrastructure's board approved a ₹184 crore capex revision in July 2026 to expand its Kolkata MV Vacuum Interrupter capacity to 250,000 units per annum by June 30, 2028, alongside a ₹107.2 crore new Mechanism Assembly Line. The same records show the company announced a strategic collaboration with Hon Hai (Foxconn) in June 2026 to co-develop and scale next-generation AI data centers, positioning the India-listed subsidiary as a potential low-cost manufacturing hub for the joint platform beginning 2026.

Earlier Tax Demands Against Schneider Electric Infrastructure

In September 2026, Schneider Electric Infrastructure Ltd was served a tax demand by the Chennai tax authority seeking additional payments for its regional operations, according to AInvest. In July 2026, the company faced an upheld GST demand of ₹9.58 lakh along with a ₹12.16 lakh penalty from CGST Appeals Noida, confirming liabilities for ineligible transitional CENVAT credits and hotel booking services, ScanX reported. In August 2026, the company filed its FY26 Business Responsibility and Sustainability Report, highlighting 100% renewable energy sourcing and zero workplace fatalities across its operations, according to ScanX.

What Comes Next for Schneider Electric Infrastructure

Schneider Electric Infrastructure has scheduled its 16th Annual General Meeting for September 10, 2026, to approve FY26 financials and re-appoint key executives including MD & CEO Udai Singh, ScanX reported. The company is evaluating legal remedies following the rejection of its appeal.