Gujarat Ambuja Receives GST Tax Demand Over ITC Claim From Non-Existent Taxpayers

Gujarat Ambuja Exports Limited (GAEL), an export company, has informed the stock exchanges (BSE and NSE) about the receipt of a GST demand order from the GST department. This order was issued by the Assistant Commissioner of State Tax in Ahmedabad on July 10, 2025.

The tax demand is related to the financial year 2019-20. As per the GST department, GAEL wrongly claimed Input Tax Credit (ITC) from suppliers who were cancelled, non-genuine and non-existent Taxpayers. Because of this, the department has demanded GAEL pay a total of Rs 18,65,074, which includes Rs 6,13,500 in tax, Rs 6,13,500 in penalty, and Rs 6,38,074.

The company has clearly mentioned that this GST demand order has no major impact on the company’s operation or other activities. As per GAEL, this tax demand is unjustified and arbitrary. The company is planning to challenge the order by filing an appeal against this order by submitting documents and proof with the Divisional Deputy Commissioner of State Tax (Appeals) within three months from the date of receipt of the Order.