NSE/BSE Codes: BSE: 505800, NSE: RANEHOLDIN

Summary of Key Information:

Nature of Event / Disclosure:

Disclosure under Regulation 30 of SEBI LODR regarding receipt of Show Cause Notice by wholly owned subsidiary Rane Steering Systems Private Limited (RSSL) from GST authorities.

Involved Parties / Authorities:

  • Issuing Authority: Deputy Excise & Taxation Commissioner (State Tax), Rewari, Haryana
  • Listed Entity: Rane Holdings Limited
  • Subsidiary: Rane Steering Systems Private Limited (RSSL)

Date / Timeline of Event:

  • Date of receipt of communication: September 28, 2026
  • Period applicable: Financial Year 2022-23
  • Response timeline: Within prescribed timelines (not specified)

Brief Description of Outcome / Dispute:

Show Cause Notice under Section 73 of CGST Act, 2017 raised on issues including:

  • Excess Input Tax Credit (ITC) claimed in GSTR-3B compared to GSTR-2B
  • Reverse charge liability on trademark fee and secondment of overseas employees
  • Miscellaneous issues including availment of ineligible ITC and issuance of credit notes

Impact of Outcome:

Financial Impact:
  • Total financial implication aggregating to ₹57.12 Crores including applicable interest and penalty
  • Penalty component specifically quantified at ₹1.25 Crores
  • Impact period: Financial Year 2022-23
Operational / Business / Strategic Impact:

No material operational or business impact disclosed in the document.

Other Implications:

No specific reputational, legal, regulatory, or market perception effects disclosed.

Next Steps / Required Actions:

  • RSSL is consulting with its consultants/tax advisors
  • Company is confident of its position on the merits of the case
  • Will be contesting before appropriate authority within prescribed timelines
  • Expects a positive resolution to this matter