GST Authority drops Rs.10.07 crore ITC demand, including Rs.0.92 crore penalty, on wholly owned subsidiary

GST Authority has dropped, in entirety, the demand raised on Rane Steering Systems Private Limited, the wholly owned subsidiary of the company.

Fri 9 Oct 2026

Demand Dropped

Rs.10.07 Crores

Penalty Included

Rs.0.92 Crores

Expected Financial Implications

Nil

What the update says

This is an update to the company's earlier letter dated September 25, 2026, which had intimated receipt of Show Cause Notice(s) from the Assistant Commissioner (ST), Royapettah, South – I, Chennai, by Rane Steering Systems Private Limited, the wholly owned subsidiary.

The subsidiary has now received an order under Section 73 of the CGST Act, 2017 from the same authority, dropping the demand in entirety.

What was being disputed

The proceedings related to a claim of ineligible input tax credit (ITC) under Section 17(5) of the GST Act, 2017.

The amount involved was Rs.10.07 Crores, which included a penalty of Rs.0.92 Crores.

The period for which the communication applies is Financial Year 2022-23 and 2023-24.

What the order does

• The GST Authority has dropped the proceedings, based on the reply submitted by the subsidiary with supporting documents and considering the factual position.
• Expected financial implications on the listed company: Nil.
• Aberrations or non-compliances identified by the authority: Nil.
• Penalty or restriction or sanction imposed: Nil.
• Action taken by the listed company: Nil.

Dates to note

• Date of receipt of the communication: October 08, 2026.

How to read this

Input tax credit is the GST already paid on purchases, which a business can set off against the GST payable on its sales. Here, the authority had questioned a part of the credit claimed, and the proceedings have now been dropped.

The update states the expected financial implications on the listed company as Nil, and that no penalty or restriction has been imposed pursuant to the communication.

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