Indo Euro Indchem Faces GST Demand Order Alleging Fraudulent ITC Availment
Indo Euro Indchem Ltd has received a GST Demand Order from the Office of the Assistant Commissioner of Central GST & Central Excise, Division-I, Mumbai Central Commissionerate. The order, dated March 13, 2026, addresses allegations concerning the company’s handling of Input Tax Credit (ITC).The company confirmed that its management and GST team reviewed the notice internally, and following advice from tax consultants, it has decided to defend the matter before the appropriate appellate authority. Indo Euro Indchem Ltd plans to file a formal response to the GST Demand Order within the prescribed timelines.
Details of the GST Demand Order
The action was taken under the CGST Act, 2017, and the corresponding section under the Maharashtra SGST Act, 2017, and the IGST Act 2017.The core violation alleged in the order involves the fraudulent availing of Input Tax Credit (ITC). This alleged activity is specifically linked to the use of fake or bogus e-way bills, which the authorities argue violated Section 74(1) of the CGST Act, 2017. Furthermore, the authorities demanded a penalty for the suppression of facts and the resultant availment of inadmissible ITC through the generation of fake invoices/e-way bills.
For a comprehensive view of the allegations, the details are summarized below:
| Particulars | Details |
|---|---|
| Authority | Office of the Assistant Commissioner of Central GST & Central Excise, Division-I, Mumbai Central Commissionerate |
| Order Basis | CGST Act, 2017 (and corresponding state/IGST acts) |
| Date of Order Receipt | March 13, 2026 |
| Allegation of Violation | Fraudulently availing ITC through fake/bogus e-way bills, violating Section 74(1) of the CGST Act, 2017. |
Financial Implications
The GST Demand Order quantifies two primary financial demands from the company: the recovery of inadmissible ITC and a statutory penalty.| Financial Aspect | Amount Demanded | Details |
|---|---|---|
| Alleged Fraudulent ITC | Rs. 10,69,040/- | Rupees Ten Lakh Sixty-Nine Thousand and Forty only. |
| Demanded Penalty | Rs. 62,70,852/- | Rupees Sixty-Two Lakh Seventy Thousand Eight Hundred and Fifty-Two only. |
Regarding the financial impact, the company stated that the matter represents a contingent liability. However, management noted that there is no impact on the company’s operations and other activities due to the order.
Stock Price Movement
As of 11:30, Indo Euro Indchem Ltd is ticking up, currently trading at ₹10.50, which reflects a strong gain of 8.58%. Throughout the session, the shares maintained a wide range, moving between a low of ₹9.20 and a high of ₹10.95.Source:
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