Rajapalayam Mills Limited Receives GST Demand Order of Rs. 31.57 Crores for FY 2023-24
Rajapalayam Mills Limited disclosed receiving a GST demand order of Rs. 31.57 crores from Tamil Nadu State Tax Officer for FY 2023-24. The demand covers alleged violations including tax due on belated creditor payments, corporate guarantee, fixed asset changes, rent payments, and selling expenses. The company expressed confidence in challenging the order through appellate proceedings, believing it has a strong case on merits.
*this image is generated using AI for illustrative purposes only.
Rajapalayam Mills Limited has received a substantial GST demand order worth Rs. 31.57 crores from the Tamil Nadu State Tax authorities for the financial year 2023-24. The company disclosed this development to BSE Limited on 18-03-2026 under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
GST Demand Order Details
The demand order was issued by Mr. Lakshmanan Kumaresan, Commercial Tax Officer serving as State Tax Officer (Inspection – 4) under the Intelligence Wing of the Joint Commissioner (ST) office. The order falls under Section 74 of the TNGST/CGST Act, 2017.
| Parameter: | Details |
|---|---|
| Issuing Authority: | State Tax Officer (Inspection – 4), Intelligence Wing |
| Order Type: | Demand Order under Sec 74 of TNGST/CGST Act, 2017 |
| Financial Year: | FY 2023-24 |
| Date of Receipt: | 18-03-2026 |
| Total Demand Amount: | Rs. 31.57 Crores |
Nature of Alleged Violations
The GST demand order encompasses multiple categories of alleged tax violations. The State Tax Officer has identified several areas where the company allegedly failed to comply with GST regulations during FY 2023-24.
The specific violations mentioned in the demand order include:
- Tax due on belated payment to creditors
- Tax due on corporate guarantee
- Tax due for addition/deletion to fixed assets
- Tax due on rent paid
- Tax due on other selling expenses
Company's Response and Position
Rajapalayam Mills Limited has indicated its intention to challenge the demand order through the appellate process. The company's management has conducted a preliminary assessment of the case and expressed confidence in their position.
According to the company's disclosure, they believe they have a strong case on merits and are confident of achieving a favorable outcome at the appellate stage. This suggests the company disputes the allegations made by the tax authorities and plans to contest the demand through proper legal channels.
Regulatory Compliance
The disclosure was made in compliance with SEBI regulations, specifically under Regulation 30 read with Para A of Part A of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced SEBI Master Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January, 2026, demonstrating adherence to updated regulatory guidelines.
The Rs. 31.57 crores demand represents a significant financial exposure for the company, though the ultimate impact will depend on the outcome of the appellate proceedings that the company intends to pursue.
Historical Stock Returns for Rajapalayam Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.79% | -1.05% | -9.63% | -14.71% | -9.98% | +6.64% |
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