News Stocks Rajapalayam Mills Limited Receives GST Demand Order of Rs 13.80 Crores for FY 2022-23Rajapalayam Mills Limited Receives GST Demand Order of Rs 13.80 Crores for FY 2022-23
Rajapalayam Mills Limited disclosed receiving a Rs 13.80 crores GST demand order from Tamil Nadu's State Tax Officer for alleged violations in FY 2022-23. The demand covers multiple areas including ITC reversal, creditor payment delays, corporate guarantees, and various operational expenses. While acknowledging the significant financial impact, the company expressed confidence in its legal position and expects favorable results through the appellate process.
*this image is generated using AI for illustrative purposes only.
Rajapalayam Mills Limited has received a significant GST demand order worth Rs 13.80 crores from the Tamil Nadu State Tax Department, as disclosed to BSE Limited on March 7, 2026. The demand pertains to alleged tax violations during the financial year 2022-23.
GST Demand Details
The demand order was issued by Mr. Lakshmanan Kumaresan, Commercial Tax Officer serving as State Tax Officer (Inspection – 4) under the Intelligence Wing. The order falls under Section 74 of the TNGST/CGST Act, 2017, carrying substantial financial implications for the textile manufacturer.
| Parameter: | Details |
|---|---|
| Issuing Authority: | State Tax Officer (Inspection – 4), Intelligence Wing |
| Order Date: | March 7, 2026 |
| Applicable Period: | FY 2022-23 |
| Legal Provision: | Section 74 of TNGST/CGST Act, 2017 |
| Total Demand: | Rs 13.80 Crores |
Alleged Violations
The GST department has identified multiple areas of alleged non-compliance during the assessment period. The contraventions span various operational aspects of the company's business activities.
The specific violations cited include:
- Tax due on ITC reversal for credit notes issued
- Interest due on belated payment of creditors
- Tax due on corporate guarantee transactions
- Tax due for addition/deletion to fixed assets
- Tax due on rent payments
- Tax due on other selling expenses
Company's Response
Rajapalayam Mills Limited has expressed confidence in challenging the demand order through the appellate process. The company's management, based on preliminary assessment, believes it has strong grounds to contest the allegations.
The textile manufacturer maintains that it has a good case on merits and anticipates a favorable outcome when the matter reaches the appellate stage. This stance suggests the company disputes the tax department's interpretation of the applicable regulations.
Regulatory Compliance
The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company fulfilled its obligation to inform stock exchanges about material developments that could impact its operations or financial position.
The notification was addressed to BSE Limited, where Rajapalayam Mills Limited shares are listed under scrip code 532503. The disclosure ensures transparency regarding potential financial obligations and their impact on the company's operations.
Historical Stock Returns for Rajapalayam Mills
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.40% | -3.91% | -7.35% | -11.87% | -4.99% | +4.95% |
17
