KRN Heat Exchanger and Refrigeration Limited has informed the Exchange about Show the Company has received a Cause Notice from Goods and Service Tax Authority.
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Awaiting price reaction for this filing.
KRN Heat Exchanger has received a Show Cause Notice from the Goods and Service Tax (GST) Authority in Rajasthan, dated October 31, 2025. The notice relates to the period of August 2025 and proposes a tax demand of Rs. 5.53 crores, including interest and penalty. The issue concerns Input Tax Credit (ITC) allegedly availed and utilized in contravention of Section 16 of the GST Act. The company has stated it will file an appropriate response before the Adjudicating Authority within the prescribed timelines. The matter is at a preliminary stage and no order has been passed yet.
A potential tax liability of Rs. 5.53 crores is a notable sum for a recently listed small-cap company, but since this is only a show cause notice and not a confirmed order, the financial impact is uncertain. Investors should monitor the company's response and the final adjudication outcome, as an unfavourable order could affect profitability.