Race Eco Chain Receives GST Show Cause Notice for ₹16.74 Crore ITC Claim

Race Eco Chain Limited has disclosed the receipt of a Demand cum Show Cause Notice (No. 18/AE/ADC/2026-27) dated August 29, 2026, from the Office of the Principal Commissioner of Central Goods and Services Tax, Noida. The notice was officially received by the company on August 31, 2026, after being received by the department on August 29, 2026.

The notice pertains to the period from FY 2020-21 to FY 2026-27 (up to June 2026) and concerns the alleged wrongful availment of Input Tax Credit (ITC) amounting to ₹16,74,60,039. This ITC was reportedly claimed from suppliers whose registrations have since been cancelled by the department. The notice has been issued under Section 74/74A of the Central Goods and Services Tax Act, 2017, and the Uttar Pradesh Goods and Services Tax Act, 2017, read with section 20 of the Integrated Goods and Services Tax Act, 2017.

The company stated that the notice is in its preliminary stage, and no final determination has been made. Race Eco Chain Limited believes that the availed ITC was in accordance with applicable GST provisions and is in the process of obtaining legal advice. A detailed response is expected to be submitted within 30 days from the receipt of the notice, and the company intends to pursue all available legal remedies. Management currently does not anticipate any immediate impact on the company's operations, and the financial implications will be determined post-adjudication.