Intimation of receipt of Demand Order under GST.
RAJPALAYAM · price
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Awaiting price reaction for this filing.
Rajapalayam Mills has received a demand order of Rs. 2 crores from the State Tax Officer (Inspection-4), Intelligence Wing of the GST Department under Section 74A of the TNGST/CGST Act, 2017. The demand relates to observations in stock for the financial year 2024-25. The order was received on 21 February 2026. The company has stated that, based on its preliminary assessment, it believes it has a strong case on merits and is confident of securing a favourable outcome at the appellate stage. No quantification of the broader financial impact beyond the Rs. 2 crore demand has been provided.
The Rs. 2 crore GST demand is relatively modest in size for a textile company of this scale and is unlikely to be materially damaging. Since the company intends to appeal and expects a favourable ruling, the near-term impact on operations or financials should be limited, though the matter introduces some uncertainty until resolved.