Race Eco Chain receives Rs.16.75 Cr GST show cause notice
Race Eco Chain received a demand cum show cause notice from the Principal Commissioner of Central Goods and Services Tax, Noida, on August 29, 2026. The notice concerns an input tax credit claim of Rs.16,74,60,039 spanning FY2021 to June 2026.
The tax authority alleges that the company availed input tax credit from suppliers whose registrations had been cancelled by the department. The notice was issued under Section 74 and Section 74A of the Central Goods and Services Tax Act, 2017, and corresponding provisions of the Uttar Pradesh Goods and Services Tax Act, 2017. It also references Section 20 of the Integrated Goods and Services Tax Act, 2017.
Race Eco Chain disclosed the receipt of the notice to stock exchanges on August 31, 2026, noting that the document arrived on a Saturday, a non-working day for the firm. The company has not yet filed a formal response but plans to do so within 30 days of receipt.
Regulatory Context
The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III. The filing aligns with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which mandates detailed reporting of regulatory actions.
The notice is currently at a preliminary stage. No final determination or adjudication order has been passed by the authority. Race Eco Chain maintains that the availed input tax credit was in accordance with applicable GST provisions. The company is obtaining legal advice and intends to pursue all available remedies under the law.
