UTL Solar Faces GST Demand of Over ₹10 Crore; Company Plans Appeal, Sees No Material Business Impact

New Delhi, January 9, 2026: UTL Solar (BSE: 544613 | NSE: UTLSOLAR), through its group entity Fujiyama Power Systems Limited, has received a tax demand order following the conclusion of a special audit for the financial year 2021–22. The company, however, has stated that it does not anticipate any material impact on its financial position or ongoing operations and is preparing to challenge the order.

Details of the Demand Order​

The demand order was received on December 31, 2025, after the completion of audit proceedings related to FY 2021–22. The order alleges contravention of certain provisions under indirect tax laws and directs the company to pay tax, interest, and penalty within the stipulated timeline.

Break-up of Demand​

The total amount directed to be paid aggregates to approximately ₹10.36 crore, with the payment deadline set on or before March 31, 2026.

Company’s Assessment and Response​

Based on its preliminary evaluation, Fujiyama Power Systems has stated that the demand raised is not maintainable on merits. The management is currently examining the order in detail and intends to take appropriate remedial action within the prescribed timelines.
The company has clarified that it does not foresee any material impact on its financial position, business operations, or overall activities arising from this development.

Next Steps​

The company plans to file an appeal before the appropriate appellate authority against the demand order. Further updates are expected as the matter progresses through the appeal process.

Source: