Prince Pipes and Fittings Limited has received a demand order from the Rajasthan State Goods & Service Taxes Department for the financial year 2019-20. The order, totaling ₹31,12,290, includes tax, interest, and penalties related to input tax credit claims. The company is currently reviewing the matter and plans to contest the demand, stating it does not expect any material impact on its ongoing financial operations.
Details of the Tax Demand
Prince Pipes and Fittings Limited disclosed that it received a demand order in Form GST DRC-07, dated March 30, 2026, from the Office of the Joint Commissioner in Rajasthan. The total demand amount of ₹31,12,290 is comprised of three components: a tax demand of ₹10,10,484, an interest charge of ₹10,91,322, and a penalty of ₹10,10,484.
Basis for the Order
The authority issued the notice under Section 74 of the CGST/RGST Act, 2017, following an assessment of the company’s filings for the 2019-20 financial year. The tax department has challenged certain input tax credits claimed by the company, citing alleged non-compliance with Section 17(5) of the relevant tax legislation.
Company Stance and Financial Impact
Management has completed an initial assessment of the order and maintains that the tax demand is not maintainable. The company is currently preparing its formal response and intends to submit a reply within the mandated timeframe. Furthermore, Prince Pipes and Fittings Limited has confirmed that it does not foresee any adverse impact on its financial position, operational activities, or business continuity as a result of this order.
Source: BSE
