Mangal Electrical Industries Receives Order for ₹55.73 Lakhs Regarding GST and ITC
Mangal Electrical Industries Ltd has been directed by the Office of the Appellate Authority (Government of Rajasthan) State Tax, Jaipur-First, Jaipur, following an order issued on June 9, 2023. The directive relates to Input Tax Credit (ITC) and the applicability of Goods and Services Tax (GST) on corporate guarantees provided by the company's Directors to banks.The order, filed under Section 107 of the Rajasthan/Central GST Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017, concerns the alleged irregular availment of ITC and the GST applicability on corporate guarantees.
The company noted that the order was uploaded on the relevant portal on April 8, 2026, and became known to Mangal Electrical Industries Ltd upon accessing the portal on April 16, 2026. To date, the company has not received a physical copy of the said order from the concerned department.
Details of the GST Order
The financial demand and contravention details are summarized below:| Parameter | Details |
|---|---|
| Authority | Office of the Appellate Authority (Government of Rajasthan) State Tax, Jaipur-First, Jaipur |
| Order Number/Date | आदेश Ţमांक ZD080623029072N दिनांक 09.06.2023 |
| Subject of Order | Order passed under Section 107 of Rajasthan/Central GST Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017. |
| Violation Alleged | Alleged irregular availment of Input Tax Credit (ITC), applicability of GST on corporate guarantees provided by the Directors of the Company to banks, and consequent levy of interest and penalty. |
| Demand Details | An amount of ₹55.73 lakhs has been demanded/levied in the said order, which includes GST, interest and penalty. |
Impact and Way Forward
The company stated that based on the merits of the matter, factual position, prevailing law, and the advice of its counsel/consultant, it assesses that there is no immediate material impact on the financials, operations, or other activities of the company.Mangal Electrical Industries Ltd confirmed its intention to file an appeal to this order with factual position and proper documentation before the Appellate Tribunal. The company noted that any material development on this matter will be communicated to the Stock Exchanges.
MEIL Stock Price Movement
Shares of Mangal Electrical Industries Limited are rallying to ₹301.52 as of 1:07 PM, gaining 3.93% in live trading. The stock is currently trading well above its day low of ₹286.02, boosted by a substantial volume of 313,736 shares.Source:
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