Rashi Peripherals Secures Major Victory in GST Appeal, Demand Slashed by 99.3%

Rashi Peripherals Limited , a prominent player in the IT peripherals and mobility products distribution sector, has achieved a significant victory in its appeal against a Goods and Service Tax (GST) demand. The Department of Goods and Service Tax, Government of Maharashtra, has issued a favorable order, dramatically reducing the original demand from Rs 11.83 crore to just Rs 8.11 lacs, marking a substantial 99.3% reduction.

Appeal Outcome

The appeal, which was filed against a demand order for Rs 11.83 crore pertaining to the financial year 2017-18, received a partial allowance. The appeal order, dated November 7, 2025, significantly revised the GST Department's demand, resulting in a final determined amount of Rs 8.11 lacs, including interest and penalty.

Breakdown of Revised Demand

The reduction in the GST demand is substantial across all components. Here's a detailed breakdown of the original disputed amounts versus the final determined amounts:

Particulars	Disputed Amount (Rs.)	Determined Amount (Rs.)	Reduction (%)
GST amount	5,47,96,964	3,12,080	99.4%
Interest	6,08,02,111	4,68,120	99.2%
Penalty	26,54,804	31,208	98.8%
Total Demand	11,82,53,879	8,11,408	99.3%

Impact on Rashi Peripherals

This favorable outcome represents a significant financial relief for Rashi Peripherals Limited. The company, which had been facing a substantial GST liability, will now only need to settle a fraction of the original demand. This development is likely to have a positive impact on the company's financial position and may boost investor confidence.

Key Points from the LODR Data

Issuing Authority: The order was issued by the Deputy Commissioner of State Tax, Mazgaon, Mumbai, Department of Goods and Service Tax, Government of Maharashtra.
Appeal Details: The company had appealed against a demand order dated December 31, 2023, which has now been partially allowed.
Order Receipt Date: The company received the appeal order on November 11, 2025.
Financial Impact: The revised demand of Rs 8.11 lacs (including interest and penalty) represents a substantial reduction from the previous demand of Rs 11.83 crore.

This favorable ruling demonstrates the effectiveness of the appeal process in addressing tax disputes and highlights the importance of companies actively engaging with tax authorities to resolve discrepancies. For Rashi Peripherals, this outcome not only provides immediate financial relief but also sets a positive precedent for handling future tax-related matters.

As the IT peripherals and mobility products distribution sector continues to evolve, companies like Rashi Peripherals will need to remain vigilant in managing their tax obligations while focusing on their core business operations. This successful appeal may serve as a case study for other companies facing similar challenges in the complex landscape of GST compliance.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.67%	-0.35%	-3.48%	+3.46%	-16.45%	+1.79%

Rashi Peripherals Limited , a prominent player in the ICT product distribution sector, has released its financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company reported a mixed performance, with revenue growth accompanied by a decline in profitability.

Revenue Growth

Rashi Peripherals witnessed a significant increase in its quarterly revenue, which rose to ₹41.55 billion, up from ₹37.06 billion in the same quarter of the previous year. This represents a year-over-year growth of approximately 12.1%.

Profit Decline

Despite the revenue growth, the company experienced a decrease in its consolidated net profit. For Q2 FY2026, Rashi Peripherals reported a net profit of ₹592.15 million, down from ₹698.67 million in the corresponding quarter of the previous year, marking a decline of about 15.2%.

EBITDA and Margin

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed improvement, increasing to ₹1.04 billion from ₹989 million year-over-year. However, the EBITDA margin compressed to 2.50% from 2.67% in the previous year, indicating some pressure on operational efficiency.

Financial Highlights

Metric	Q2 FY2026	Q2 FY2025	YoY Change
Revenue	₹41.55 billion	₹37.06 billion	+12.1%
Net Profit	₹592.15 million	₹698.67 million	-15.2%
EBITDA	₹1.04 billion	₹989 million	+5.2%
EBITDA Margin	2.50%	2.67%	-17 bps

Operational Developments

During the quarter, Rashi Peripherals made several notable operational changes:

The company appointed Mr. Arvind Bajoria as the new Company Secretary & Compliance Officer, effective November 8, 2025.
The Board of Directors approved an increase in the company's borrowing limit by an additional ₹1,000 crore, subject to shareholder approval.
Rashi Peripherals implemented an Employee Stock Option Scheme, recognizing a charge of ₹72.17 million towards equity-settled share-based payment expenses.

Market Position and Outlook

Rashi Peripherals continues to operate in the competitive Computer Systems, Software & Peripherals, and Mobiles segment. The company's ability to grow its revenue in a challenging market environment demonstrates its strong market position. However, the decline in profitability suggests that the company may be facing cost pressures or competitive challenges that are impacting its bottom line.

The company's focus on expanding its operational capabilities, as evidenced by the increased borrowing limit and employee stock option scheme, indicates a strategic approach to long-term growth. However, investors may want to monitor how these initiatives translate into improved profitability in the coming quarters.

As the ICT distribution landscape continues to evolve, Rashi Peripherals' performance in the next few quarters will be crucial in determining its ability to balance growth with profitability in a dynamic market environment.