Rashi Peripherals Receives ₹1.96 Crore GST Demand Order for FY 2021-22
Rashi Peripherals Limited received a ₹1.96 crore GST demand order from Chennai North Commissionerate for FY 2021-22, alleging wrong ITC availment on imports and excess ITC claims. The demand includes ₹1.78 crores in taxes and ₹17.79 lakhs in penalties across CGST, IGST, and SGST. Company management considers the demand unjustified and plans to file an appeal with tax consultants' assistance. The amount will be treated as contingent liability until final resolution.
*this image is generated using AI for illustrative purposes only.
Rashi Peripherals Limited has received a significant GST demand order from tax authorities, totaling ₹1.96 crores for alleged Input Tax Credit (ITC) violations pertaining to Financial Year 2021-22. The company disclosed this development through a regulatory filing under SEBI Listing Regulations on January 1, 2026.
GST Demand Details
The Assistant Commissioner of GST & Central Excise, Chennai North Commissionerate, issued the order on December 31, 2025, with reference number GEXCOM/ADJN/GST/11681/2025-CGST-DIV-PUR-COMMRTE-CHENNAI (N). The demand breakdown across different GST components is as follows:
| GST Component | Tax Amount (₹) | Penalty Amount (₹) | Total Amount (₹) |
|---|---|---|---|
| CGST | 3,78,198 | 37,820 | 4,16,018 |
| IGST | 1,70,30,012 | 17,03,001 | 1,87,33,013 |
| SGST | 3,78,333 | 37,833 | 4,16,166 |
| Total | 1,77,86,543 | 17,78,654 | 1,95,65,197 |
Nature of Alleged Violations
The GST order stems from an adjudication of Show Cause Notice (SCN) No. 08/2025 GST (AC) dated September 23, 2025. The authorities have alleged that Rashi Peripherals committed the following violations:
- Wrong availment of Input Tax Credit (ITC) on import of goods
- Excess claim of ITC by the company
- Liability to pay the demanded tax amount and associated penalties
The company received the official communication on December 31, 2025, at 17:40 hours, marking the formal start of the compliance timeline for response.
Company's Response Strategy
Rashi Peripherals' management has expressed strong disagreement with the GST demand, stating that the allegations are not justified. The company is actively engaging with its tax consultants to prepare a comprehensive appeal against the order. This approach indicates the company's confidence in challenging the demand through proper legal channels.
Financial Impact and Disclosure
The GST demand will have specific accounting implications for Rashi Peripherals:
| Impact Parameter | Details |
|---|---|
| Demand Amount | ₹1.96 crores (including penalty) |
| Accounting Treatment | Contingent liability in financial statements |
| Duration | Until final disposal of the matter |
| Financial Year Affected | 2021-22 |
The company has fulfilled its regulatory obligations by promptly disclosing this material development to stock exchanges under Regulation 30 of SEBI Listing Regulations. The disclosure ensures transparency for investors and stakeholders regarding potential financial obligations.
Regulatory Compliance
The filing was signed by Arvind Bajoria, Company Secretary and Compliance Officer, demonstrating proper corporate governance protocols. The company has requested both BSE Limited and National Stock Exchange of India Limited to take the disclosure on record, ensuring full regulatory compliance.
This development represents a significant regulatory challenge for Rashi Peripherals, though the company's decision to contest the demand suggests confidence in its tax compliance practices for the period in question.
Historical Stock Returns for Rashi Peripherals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.07% | +2.75% | +9.70% | +19.29% | -11.68% | +12.22% |
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