Race Eco Chain received a demand cum show cause notice from the Principal Commissioner of Central Goods and Services Tax, Noida, on August 29, 2026. The notice concerns an input tax credit claim of ₹16,74,60,039 spanning FY2021 to June 2026.

The tax authority alleges that the company availed input tax credit from suppliers whose registrations had been cancelled by the department. The notice was issued under Section 74 and Section 74A of the Central Goods and Services Tax Act, 2017, and corresponding provisions of the Uttar Pradesh Goods and Services Tax Act, 2017. It also references Section 20 of the Integrated Goods and Services Tax Act, 2017.

Race Eco Chain disclosed the receipt of the notice to stock exchanges on August 31, 2026, noting that the document arrived on a Saturday, a non-working day for the firm. The company has not yet filed a formal response but plans to do so within 30 days of receipt.

Regulatory Context

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III. The filing aligns with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which mandates detailed reporting of regulatory actions.

The notice is currently at a preliminary stage. No final determination or adjudication order has been passed by the authority. Race Eco Chain maintains that the availed input tax credit was in accordance with applicable GST provisions. The company is obtaining legal advice and intends to pursue all available remedies under the law.

What the Numbers Show

The disputed amount of ₹16,74,60,039 represents a significant contingent liability if the tax department’s position is upheld. This figure covers a multi-year period from FY2021 through June 2026, indicating a systemic review of supplier compliance rather than an isolated transaction error. The company’s management stated that there is no immediate impact on operations, though financial implications will depend on the final adjudication outcome.

Race Eco Chain Limited has scheduled its 26th Annual General Meeting for Saturday, September 26, 2026. The meeting will commence at 1:00 pm through Video Conferencing or Other Audio-Visual Means.

The company issued a compliance notice to the Bombay Stock Exchange and the National Stock Exchange on August 26, 2026. This submission confirms the publication of newspaper advertisements in "Financial Express" and "Jansatta" regarding the upcoming shareholder meeting.

Meeting Details

The 26th AGM will be held without the physical presence of shareholders. The format adheres to the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Shareholders will transact business as outlined in the official AGM Notice.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Regulations. The company also cited compliance with circulars from the Ministry of Corporate Affairs and SEBI. Shiwati, the Company Secretary and Compliance Officer, signed the submission digitally on August 26, 2026.