GST demand order of INR 59,44,859/- received; company says it will explore legal remedies

Rathi Steel & Power has received a GST demand order of INR 59,44,859/- under Section 74 of the CGST Act, 2017.

Sat 10 Oct 2026

GST Demand Amount

INR 59,44,859/-

Legal Provision Cited

Section 74 of the CGST Act, 2017

Nature of Demand

interest on delayed GST payment for January 2021

What the company has disclosed

Rathi Steel and Power Limited has informed the exchanges that it is in receipt of a demand order issued by the Office of the Additional Commissioner, GST & Central Excise, Rourkela Commissionerate, Rourkela, Odisha. The order is dated October 8, 2026, and was received by the company on October 9, 2026. It has been passed under Section 74 of the CGST Act, 2017.

The amount involved

• The demand raised is INR 59,44,859/- (Indian Rupees Fifty-Nine Lakh Forty-Four Thousand Eight Hundred and Fifty-Nine Only).
• The alleged demand pertains to interest on delayed payments of GST liability for the month of January 2021.

What the company says

• On impact: no material impact on the financial, operational or other activities of the company can be foreseen.
• On the demand: the company believes the said demand is not maintainable.
• On next steps: the company will explore appropriate legal remedies to contest the same, as may be necessary.

Reading it simply

• A demand order is a claim raised by the tax authority; here it relates to interest on a GST liability for January 2021.
• The company's position is that the demand is contestable, and the legal route to challenge it is still to be taken.
• Section 74 of the CGST Act, 2017 is the provision under which this demand has been raised.

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