R R Kabel has received a show cause-cum-demand notice for Rs 13.19 crore from the DGGI, Surat. The notice pertains to tax discrepancies for the financial years 2020-21 through 2023-24. The company stated it is currently evaluating the notice and intends to submit a formal rebuttal, asserting that the development is unlikely to have a material impact on its operations.
R R Kabel Faces Rs 13.19 Crore GST Demand Notice
Total demand of Rs 13.19 crore plus interest and penalties notified.
Company plans to formally contest the DGGI notice with documentary evidence.
Reader Takeaway: Regulatory tax notice issued; management denies material impact, planning formal defense to contest the demand.
What just happened
R R Kabel Ltd has been served a show cause-cum-demand notice by the Directorate General of Goods and Services Tax Intelligence (DGGI), Surat Zonal Unit. The notice, dated 27 August 2026, concerns tax compliance for the financial years 2020-21 through 2023-24. The total amount demanded stands at Rs 13,19,45,614, exclusive of applicable interest and penalties that may accrue.
Why this matters
For investors, this marks a regulatory event involving tax authorities. GST compliance matters remain a key monitorable for mid-cap manufacturing firms. While the demand is for a significant sum, the company has communicated that it does not expect this to hinder its operational stability or financial health at this time.
Management Response
The company is in the process of reviewing the DGGI's allegations. Management has confirmed its intent to file detailed submissions to clarify its position. The company maintains that it has the necessary documentary evidence to support its tax filings during the period in question.
What to track next
Shareholders should look for subsequent disclosures regarding the company's formal response to the DGGI and any updates on potential hearings or outcomes resulting from this tax inquiry.