Raghuvir Synthetics received a GST show cause notice for Rs 2.24 crore related to input tax credit. The company believes it has complied with GST rules and expects no material impact.
Raghuvir Synthetics Ltd
Rs 2.24 crore GST notice received; no material operational impact stated.
What just happened
Raghuvir Synthetics Ltd has received a Show Cause Notice from the Directorate General of GST Intelligence, Ahmedabad Zonal Unit. The notice pertains to the period FY 2020-21 to FY 2024-25 and alleges improper availment and utilization of Input Tax Credit (ITC).
Why this matters
This notice demands a total of Rs 2.24 crore, which includes tax, interest, and penalty. The company's response and the eventual outcome could have financial implications if the allegations are upheld. However, the company has stated that it believes ITC was appropriately availed.
The backstory
The notice covers a period of five fiscal years, from FY 2020-21 to FY 2024-25, indicating a significant review by GST authorities.
What changes now
Raghuvir Synthetics is reviewing the notice and plans to submit a formal response within the stipulated time. The company's management expressed confidence in its ITC practices.
Risks to watch
If the company's response is not satisfactory to the GST authorities, it could face a demand for the Rs 2.24 crore, impacting its financial health. A delay in filing disclosures is also a governance point.
Disclosure Clarification
The company also clarified a one-day delay in disclosing this notice, stating it was procedural and inadvertent, occurring on August 21, 2026, instead of the August 20, 2026 deadline. This was due to an internal review before finalization.