Prince Pipes & Fittings has received a show cause cum demand notice of ₹2.74 crore from the State Goods & Service Taxes Department, Government of Rajasthan, for the financial year 2022-23.

The notice, dated September 29, 2026, was issued by the Office of the Deputy Commissioner, Circle-Phulera-Jobner, Jaipur, under Section 73 of the CGST/RGST Act, 2017. The aggregate amount demanded includes tax, interest, and penalty components across IGST, CGST, and SGST heads.

Allegations and Demand Breakdown

The authority alleged two primary contraventions regarding the company's tax compliance for FY23:

1. Excess outward tax reported in E-way bills compared to GSTR-3B filings.
2. Excess Input Tax Credit (ITC) claimed in GSTR-3B that was not confirmed in GSTR-2A/2B or GSTR-9.

The total demand of ₹2,74,41,122 is distributed as follows:

Company Response and Impact

Prince Pipes stated that based on its assessment, the aforesaid demand is not maintainable. The company is evaluating the matter and will submit its reply within the prescribed time limit. It did not envisage any relevant impact on its financials, operations, or other activities.

What the Numbers Show

The demand structure reveals that interest and penalties constitute 44% of the total amount claimed (₹1.22 crore out of ₹2.74 crore). The IGST component alone accounts for 72% of the total demand, highlighting that the majority of the disputed transactions likely involved inter-state supplies where E-way bill discrepancies were flagged most significantly.

Prince Pipes & Fittings has received a show cause cum demand notice of ₹65.93 crore from the Karnataka Goods and Services Tax department for the financial year 2022-23. The notice, issued under Section 73 of the CGST/KGST Act, 2017, pertains to alleged discrepancies in tax filings and input tax credit claims.

The intimation was filed with the stock exchanges on September 30, 2026. The notice was issued by the Office of the Commercial Tax Officer, DGSTO Dharwad, on September 29, 2026. The demand covers tax liabilities and interest accrued over the specified period.

Breakdown of the demand

The total demand of ₹65,93,632 comprises tax amounts and interest across three major GST heads. The Integrated Goods and Services Tax (IGST) component constitutes the largest share of the total liability.

Allegations and company response

The authority cited two primary grounds for the demand:

1. Excess outward tax reported in E-way bills compared to GSTR3B returns.
2. Excess Input Tax Credit (ITC) claimed in GSTR 3B that was not confirmed in GSTR 2A/2B or GSTR 9, along with ineligible ITC claims under Section 17(5).

In its disclosure, Prince Pipes stated that based on its assessment, the demand is not maintainable. The company is currently evaluating the matter and plans to submit a reply within the prescribed time limit. It further noted that it does not envisage any relevant impact on its financials, operations, or other activities.

What the numbers show

The interest component accounts for approximately 41% of the total demand amount. This high ratio suggests that the alleged discrepancies date back to FY23, allowing significant interest to accrue under the statutory provisions before the notice was issued in September 2026. The IGST portion alone exceeds ₹39 lakh, indicating that interstate transaction mismatches form the bulk of the disputed liability.