Details of the Order
Authority: Deputy Commissioner, Central GST Division, Kota Rural
Order Details: An order has been passed confirming demand of wrongly availed ITC of ₹ 0.90 Crore (IGST) under Section 74(9) of the CGST Act, 2017, along with applicable interest under Section 50 of the CGST Act, 2017.
Penalties Imposed:
- Penalty of ₹ 0.90 Crore under Section 74
- Penalty of ₹ 0.90 Crore under Section 122(1)(x)
- Penalty of ₹ 0.90 Crore under Section 122(1)(xvii) of the CGST Act, 2017
Total Financial Impact: ₹ 2.70 Crore (if the order is sustained)
Timeline
- Order dated: 7th October, 2026
- Order received by: Company Secretary & Compliance Officer
- Date of receipt: 8th October, 2026
- Disclosure submitted to exchanges: 8th October, 2026
Alleged Violation
The order alleges that the company had wrongly availed ITC of ₹ 0.90 Crore on the basis of an invoice issued by a service provider in contravention of the provisions of Section 16 of the CGST Act, 2017.
Impact Assessment
Financial Impact: The order, if sustained, would have a financial impact of ₹ 2.70 Crore.
Operational Impact: There is no impact on the operations or business activities of the company.
Company Response
The company is examining the order and the available legal remedies and intends to file an appeal under Section 107 of CGST Act, 2017 within three months from the date of receipt of the order (by 7th January, 2027).