Receipt of GST DRC-07 order: demand of ₹95,30,874 in tax, interest and penalty; appeal planned

GST order in Form GST DRC-07 received under Section 74(1) of the GST Act, 2017 from the Assistant Commissioner (ST), Hindupur Circle, Andhra Pradesh.

Tue 6 Oct 2026

GST Demand (tax, interest, penalty)

₹95,30,874

Tax Imposed

39,11,016/-

Order Form / Section

Form GST DRC-07 under Section 74(1) of the GST Act, 2017

An exchange update dated October 06, 2026 says the company has received an Order in Form GST DRC-07 under Section 74(1) of the GST Act, 2017.

Who passed the order

• Office of the Assistant Commissioner / Officer (ST), Hindupur Circle, Ananthapuramu Division, Andhra Pradesh.
• The order is dated September 24, 2026.
• It was received through speed post at the company's factory outlet, and subsequently at the registered office on October 06, 2026.

What the order is about

• The disclosure describes the nature as disallowance / excess claim of ITC and tax on corporate guarantee under GST Audit.
• Tax imposed under the order is 39,11,016/-.
• The demand is limited to tax, interest and penalty of ₹95,30,874.

What the company says

• It is assessing the legal grounds.
• It will take appropriate steps, including update an appeal before the appellate authority within the stipulated timeline.

Impact stated in the update

• Financials: the demand is limited to tax, interest and penalty of ₹95,30,874.
• Operations: no impact on the regular business operations or activities of the company.

Takeaway

• This is an order from a GST authority alleging disallowance / excess claim of ITC and tax on corporate guarantee, with a quantified demand.
• The company has stated its intent to appeal, so the outcome of that process is the item to watch.

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