Unitech Fibres has Rs 5.0316 crore in disclosed GST demands

M/s. Unitech Fibres Pvt. Ltd. disclosed Goods and Services Tax (GST) demand matters of Rs 5.0316 crore across five entries, based on amounts in its indirect-tax litigation table. Two GST demand intimations dated August 14, 2026 total Rs 2.3488 crore, and Unitech Fibres said it had not responded to either notice as of the prospectus date.

How large are Unitech Fibres' disclosed GST demands?

Unitech Fibres' five disclosed GST demand matters total Rs 5.0316 crore. The entries comprise Rs 1.6941 crore for financial year 2020-21, Rs 98.04 lakh for 2019-20, Rs 0.83 lakh for 2017-18, and two 2022-23 demand intimations of Rs 1.781 crore and Rs 56.78 lakh.

The total excludes a separate Rs 1.5217 crore GST refund proceeding for January 2026 to February 2026. Unitech Fibres applied on April 6, 2026 for a refund of accumulated input tax credit under the first proviso to Section 54(3) of the Central Goods and Services Tax Act, 2017, citing an inverted tax structure. The Deputy Commissioner of State Tax issued a show-cause notice, or SCN, proposing rejection on May 5, 2026, and the company filed its reply on May 13, 2026.

Why do the August 2026 GST demands matter most now?

The two August 14, 2026 GST demand intimations are the matters at the earliest disclosed stage because Unitech Fibres was yet to respond to them. Their Rs 2.3488 crore combined amount represents about 47% of the Rs 5.0316 crore total GST demand matters, making them the largest concentration among the five entries.

The larger notice concerns Rs 1.781 crore for financial year 2022-23, while the other concerns Rs 56.78 lakh for the same year. The litigation table does not state the provision cited in either intimation, the underlying tax issue or the company's intended defence. It therefore discloses no order, appeal or adjudicated outcome for the two notices.

The two notices also each exceed the Rs 38.72 lakh threshold used in Unitech Fibres' materiality policy for certain non-tax litigation. The Rs 1.781 crore notice is about 4.60 times that figure, and the Rs 56.78 lakh notice is about 1.47 times it. That comparison measures the stated amounts only, because the policy separately requires disclosure of direct and indirect tax proceedings.

How do the earlier GST proceedings differ from the pending notices?

The earlier GST matters have reached order or appeal stages, unlike the two 2022-23 intimations awaiting a response. For 2020-21, an October 26, 2024 SCN seeking Rs 1.6941 crore was followed by an Order-in-Original, the department's adjudication order, dated December 20, 2024 confirming the demand. Unitech Fibres appealed under Section 107(1) of the CGST Act on March 20, 2025, and the appellate authority acknowledged it on April 8, 2025.

For 2019-20, the department issued a June 21, 2023 intimation under Section 73(5) for Rs 91.90 lakh, followed by a June 28, 2023 SCN for Rs 98.04 lakh including interest and penalty. Unitech Fibres filed an appeal on June 10, 2024, which the department acknowledged on June 25, 2024. The difference between Rs 91.90 lakh and Rs 98.04 lakh reflects the later notice's inclusion of penalty and interest.

The 2017-18 proceeding is the smallest GST demand entry at Rs 0.83 lakh, but it too remains in appeal. The Department of GST issued a Section 73 SCN on April 11, 2022, and an Order-in-Original dated June 2, 2022 confirmed Rs 0.83 lakh. Unitech Fibres appealed on September 26, 2022, with an acknowledgement dated October 3, 2022.

What does Unitech Fibres' materiality policy show about the amounts?

Unitech Fibres set Rs 38.72 lakh as the materiality threshold in a board resolution dated May 7, 2026. It was the lowest of three policy calculations: 2% of turnover, or Rs 4.4849 crore; 2% of net worth, or Rs 1.2999 crore; and 5% of the average absolute profit or loss after tax for the prior three financial years, or Rs 38.72 lakh.

The policy says that threshold applies to litigation and arbitration other than proceedings already covered by specified criminal, regulatory, direct-tax and indirect-tax disclosure categories. It is therefore not a test of whether a GST matter must be disclosed. It does provide a stated scale comparison: four of the five GST demand entries, ranging from Rs 56.78 lakh to Rs 1.781 crore, are above Rs 38.72 lakh, while the Rs 0.83 lakh entry is below it.

Unitech Fibres also listed 11 direct-tax matters totalling Rs 71.86 lakh using the table's stated amounts. Those include a Rs 36.02 lakh composite income-tax demand covering five assessment years and Rs 22.13 lakh of tax deducted at source defaults through 2025-26. The Rs 5.0316 crore GST-demand total is therefore larger than the disclosed direct-tax total, while the Rs 1.5217 crore refund proceeding remains a separate claim-related matter.

What other material tax litigation has Unitech Fibres disclosed?

Unitech Fibres has a pending customs appeal involving Rs 49.67 lakh of customs duty, plus applicable interest and penalty, on imports of polyethylene terephthalate (PET) Flakes from February 2018 to May 2019. The company filed Customs Appeal No. CUSTOMS/0086605 of 2023 before the Customs, Excise and Service Tax Appellate Tribunal under Section 129A(1) of the Customs Act, 1962.

The appeal seeks to overturn an August 10, 2022 Order-in-Appeal that confirmed the duty demand. Unitech Fibres contends that PET Flakes are salvaged material, largely obtained from used PET bottles, rather than virgin PET material, and that the imports were correctly classified under Customs Tariff Heading 3907 99 90 with benefits claimed under Notification No. 46/2011-Customs. The prospectus lists December 7, 2026 as the next hearing date.

The legal disclosures state that Unitech Fibres had no outstanding criminal proceedings initiated against it and no outstanding statutory or regulatory actions against it, except as disclosed in the legal-information section. That statement distinguishes the listed tax proceedings and customs appeal from criminal cases or separately identified regulatory actions.

Conclusion

Unitech Fibres' disclosed GST demand matters amount to Rs 5.0316 crore, with Rs 2.3488 crore concentrated in two August 14, 2026 notices that were still awaiting a company response. The other GST matters have progressed further, through confirmed orders and appeals involving Rs 1.6941 crore for 2020-21, Rs 98.04 lakh for 2019-20 and Rs 0.83 lakh for 2017-18.

The next disclosed developments are Unitech Fibres' responses to the two August 2026 demand intimations and any resulting order or appeal. The company also disclosed a December 7, 2026 hearing for its Rs 49.67 lakh customs-duty appeal, while the prospectus gives no resolution date for the Rs 1.5217 crore GST refund-rejection proceeding.