KRN Heat Exchanger Receives GST Order from Tax Authority Pertaining to Ineligible ITC Demand
KRN Heat Exchanger and Refrigeration Limited has received an order from a State Tax authority regarding the recovery of tax, interest, and penalty related to the Rajasthan Goods and Service Tax Act, 2017 (RGST Act 2017).The Deputy Commissioner of State Tax, Circle Shahjahanpur, Zone: Bhiwadi, Rajasthan, passed the order on May 13, 2026. The company received the communication on June 19, 2026.
The action initiated by the GST Authority relates to a demand for ineligible Input tax credit (ITC) for the Financial Year 2025-26.
Key details of the order and the associated actions taken are presented below:
| Aspect | Details |
|---|---|
| Authority | Deputy Commissioner of State Tax, Circle Shahjahanpur, Zone: Bhiwadi, Rajasthan |
| Date of Order | May 13, 2026 |
| Tax Amount Recovered | ₹ 4,94,66,278 (IGST+CGST+SGST) under Section 74A of the RGST Act, 2017 |
| Interest Amount | ₹ 9,75,773 (IGST+CGST+SGST) under Section 50 of the RGST Act, 2017 |
| Penalty Amount | ₹ 49,46,627 (IGST+CGST+SGST) under section 74A(5) of the RGST Act, 2017 |
The company stated that it believes the ITC was availed after following the due process of law and complying with the conditions set out under GST law.
Regarding the impact on operations, KRN Heat Exchanger and Refrigeration Limited reported that there will be no material financial impact apart from the specified amounts detailed in the order. The Company confirmed it is taking appropriate legal action against the said order to challenge the recovery of tax, the levy of interest, and the penalty.
KRN Stock Price Movement
KRN Heat Exchanger and Refrigeration Limited saw its stock gain on Friday, closing at ₹1235.20 after rising 1.94%. The equity traded with a total volume of 85,091 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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