Intimation of receipt of Demand Order under GST.
RAJPALAYAM · price
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Rajapalayam Mills Limited has received a Demand Order under Section 74 of the TNGST/CGST Act, 2017 from the State Tax Officer (Inspection-4), Intelligence Wing of the GST Department. The demand of Rs. 13.80 Crores covers FY 2022-23 and relates to tax on ITC reversal for credit notes issued, interest on belated payment to creditors, tax on corporate guarantees, additions/deletions to fixed assets, tax on rent paid, and tax on other selling expenses. The order was received on March 7, 2026. The company has stated that based on its preliminary assessment, it believes it has a strong case and is confident of a favourable outcome at the appellate stage.
This is a tax demand that the company plans to contest, so there is no immediate cash outflow. However, if the demand is upheld at appeal, it could result in a financial hit of Rs. 13.80 Crores. Investors should monitor the appellate outcome as it may affect future earnings.