Rane (Madras) receives tax demand notice from CGST

Rane (Madras) Limited disclosed today that it received a show cause notice on September 30, 2025, from the principal commissioner of CGST and Central Excise, Chennai North. The notice pertains to a tax demand under section 73 (1) of the CGST Act, 2017.

The show cause notice addresses alleged issues from April 2021 to March 2022, including excess/wrong availment of Input Tax Credit (ITC), non-reversal of ITC on ineligible credits, and short payment of tax. The expected financial implication for Rane (Madras) is estimated to be INR 2.39 crore, excluding applicable interest and penalties. The company intends to file an appropriate reply with the authorities within the stipulated timelines.