Ram Ratna Wires faces ₹29.23 crore GST demand from DGGI for FY21-24
- Ram Ratna Wires received a DGGI notice demanding ₹29.23 crore in GST dues
- The demand covers financial years FY21 through FY24 with added interest
- Company plans to file rebuttal submissions with documentary evidence
- Management states no material impact on operations or financials is expected
*this image is generated using AI for illustrative purposes only.
Ram Ratna Wires has received a show cause-cum-demand notice from the Directorate General of Goods and Services Tax Intelligence (DGGI) raising a tax demand of ₹29.23 crore. The notice, issued by the Surat Zonal Unit on August 27, 2026, covers the financial years from FY21 to FY24.
The company disclosed the receipt of the communication under Regulation 30 of the SEBI Listing Regulations. The demand includes applicable interest and penalties under Section 74(1) and Section 122(1)(ii) of the CGST Act, 2017, read with the SGST and IGST Acts. Ram Ratna Wires stated that the notice was received late on August 27, leading to a delayed filing due to an administrative holiday on August 28.
Regulatory Action Details
The DGGI’s notice targets potential non-compliances or aberrations in GST filings over the four-year period. While the specific nature of the alleged discrepancies was not detailed in the disclosure, the authority has imposed applicable interest and penalties as per statutory provisions. The company noted that no specific penalty amount was fixed at this stage, pending further evaluation.
| Particulars | Details |
|---|---|
| Authority | Joint Director, DGGI, Surat Zonal Unit |
| Demand Amount | ₹29.23 crore (plus interest/penalty) |
| Applicable Period | FY2020-21 to FY2023-24 |
| Legal Basis | Section 74(1) & 122(1)(ii) of CGST Act |
| Receipt Date | August 27, 2026 |
Company Response
Ram Ratna Wires is currently evaluating the allegations contained in the notice. The company intends to file detailed submissions supported by documentary evidence within the prescribed timeline to rebut the claims. Management stated that it does not envisage any material impact on its financials, operations, or other activities arising from this notice at present.
What the Numbers Show
The demand of ₹29.23 crore represents a significant contingent liability if upheld, though the company maintains its position that the impact will be immaterial. The absence of identified "aberrations" in the disclosure table suggests the company disputes the fundamental basis of the DGGI’s assessment. Investors should monitor subsequent filings for any updates on the outcome of the submissions.
Historical Stock Returns for Ram Ratna Wires
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.92% | +21.66% | +39.17% | +84.57% | +72.20% | 0.0% |
How might the resolution of this ₹29.23 crore GST demand impact Ram Ratna Wires' cash flow and liquidity ratios in the upcoming fiscal quarters?
Could this DGGI notice trigger a broader regulatory review of GST compliance practices across the Indian wire and cable manufacturing sector?
What is the likelihood of the company securing a stay order on the demand while it files its rebuttal, and how would that affect interim financial reporting?
20
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
