Finolex Cables is once again under the GST scanner after tax authorities upheld a fresh demand of ₹12.29 lakh linked to alleged Input Tax Credit (ITC) mismatches and credit note discrepancies for FY2020-21, adding to a growing list of tax disputes faced by the company in recent months.
The latest order, issued by the Additional Commissioner, Grade-II Appeal, Lucknow, rejected the company’s appeal and upheld the original tax demand, which includes ₹6.79 lakh in tax, ₹4.81 lakh in interest, and penalties.
While the amount itself may appear relatively small for a company of Finolex’s scale, the development has once again raised questions around recurring GST compliance disputes involving the cable major. The company stated that the order would not materially impact operations and indicated that it may pursue a further appeal before the Appellate Authority.
However, the latest notice is far from an isolated incident.
Over the past several months, Finolex Cables has received multiple GST-related orders across different jurisdictions involving alleged ITC mismatches, E-way bill discrepancies, HSN classification issues, and tax credit disputes. Earlier this year, the company was hit with a massive ₹29.46 crore GST demand from Dehradun authorities over alleged violations tied to ITC mismatches and E-way bill irregularities.
In separate cases, the company also received GST demands of ₹22 crore, ₹41 lakh, ₹22.58 lakh, ₹15.19 lakh, and several other notices across different assessment years and states. Most of these disputes revolved around alleged mismatches in supplier filings, credit availment records, or GST return reconciliations.
The repeated emergence of GST disputes highlights the increasingly aggressive scrutiny being faced by Indian manufacturing companies under the evolving GST compliance framework, especially in sectors involving complex procurement chains and large-scale interstate transactions.
Despite the mounting notices, Finolex has consistently maintained that these demands are either “ill-considered” or not expected to have a significant operational impact, while continuing to challenge several orders through appellate mechanisms.
The developments come at a time when investors are closely watching corporate governance, tax transparency, and regulatory compliance standards across listed manufacturing companies. Analysts believe persistent tax litigation, even when financially manageable, can gradually influence investor sentiment and increase compliance overheads for businesses operating at scale.