Raghuvir Synthetics Faces Tax Demand Notice

AHMEDABAD — Textile processing and manufacturing firm Raghuvir Synthetics Limited announced that it has received an official tax intimation notice from the Goods and Services Tax (GST) Department concerning historical tax assessments.

The notice, issued under Section 74(5) of the Central Goods and Services Tax Act, 2017, cites a total ascertained tax demand of 22.4 million rupees (₹2.24 crore) relating to prior financial years. Management has confirmed that legal and financial advisors are reviewing the intimation to formulate an appropriate response.

Tax Proceedings and Regulatory Context

The communication follows ongoing tax scrutiny regarding operational transactions from previous assessment cycles. Under statutory provisions, the issuance of Form DRC-01A allows the audited entity an opportunity to examine the ascertained liability and submit representations before formal adjudication or recovery proceedings advance.

According to official stock exchange disclosures, corporate filings, and regulatory updates:

• Issuing Authority: Goods and Services Tax (GST) Department.

• Notified Amount: Approximately 22.4 million rupees (₹2.24 crore).

• Applicable Framework: Section 74(5) of the CGST Act, 2017.

• Company Action: Management is evaluating the computational details and preparing a formal reply within the stipulated statutory window.

Official Sources Section

• BSE India Corporate Disclosures: Official material event notifications, regulatory filings, and corporate disclosures submitted by Raghuvir Synthetics.

• National Stock Exchange of India (NSE): Exchange compliance archives and corporate announcement portals.

• Central Board of Indirect Taxes and Customs (CBIC): Statutory provisions and adjudication guidelines under the CGST Act, 2017.

Quote Section

According to statements released in official stock exchange disclosures regarding the tax intimation:

"The company has received an intimation of tax ascertained as being payable under Section 74(5) of the Central Goods and Services Tax Act, 2017, from the GST Department. We are examining the notice and will submit our comprehensive response in accordance with applicable legal provisions."

Why It Matters

For institutional investors, shareholders, and corporate analysts, regulatory and tax notices involving material cash outflows impact short-term liquidity and financial provisioning. Monitoring the resolution of tax disputes ensures transparent corporate governance and accurate financial reporting.

Key Facts at a Glance

• Company: Raghuvir Synthetics Limited.

• Nature of Notice: GST tax demand intimation (Form DRC-01A).

• Total Amount: 22.4 million rupees.

• Statutory Section: Section 74(5) of the CGST Act, 2017.

FAQ Section

What is the total tax demand communicated to Raghuvir Synthetics?

The GST Department issued an intimation ascertaining a tax demand of 22.4 million rupees.

Under which legal provision was the notice issued?

The intimation was issued under Section 74(5) of the Central Goods and Services Tax (CGST) Act, 2017.

How is the company responding to the tax notice?

Management is reviewing the tax computation and compliance records to submit a formal response within the mandated regulatory timeline.

Where can investors verify official disclosures regarding this tax notice?

Official material event disclosures and regulatory filings are published directly on the BSE and NSE corporate announcement portals.

Source: BSE India, NSE India, CBIC, Raghuvir Synthetics