Tax & Penalty20 Jun 2026, 04:40 pm
KRN Heat Exchanger Faces ₹5.4 Cr GST Demand
AI Summary
KRN Heat Exchanger And Refrigeration Ltd has received an order from the Deputy Commissioner of State Tax, Rajasthan, for the recovery of ₹4,94,66,278 in tax, ₹9,75,773 in interest, and ₹49,46,627 in penalty, totaling approximately ₹5.44 crore. The demand is related to ineligible Input Tax Credit (ITC) for the Financial Year 2025-26. The company disputes the demand, stating that ITC was availed following due process, and plans to challenge the order legally. The company anticipates no material financial impact beyond the mentioned interest.
Key Highlights
- GST authority issued order for ₹4.94 Cr tax demand.
- Additional ₹0.09 Cr interest and ₹0.49 Cr penalty levied.
- Demand pertains to ineligible Input Tax Credit for FY25-26.
- Company disputes the demand and plans legal challenge.
- No material financial impact expected beyond interest.
Price Impact
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