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RITES Gets Major Tax Relief: ₹38 Crore Demand Set Aside
4 Oct
Summary
- RITES received ₹38.30 crore tax relief from Gujarat tax authority.
- The relief was granted after an appeal regarding FY 2019-20 demand.
- Company expects a good year in FY28 with a record order book.
RITES Ltd announced on October 4, 2026, that it received substantial relief amounting to ₹38.30 crore. This relief pertains to a demand that included tax, interest, and penalty for the financial year 2019-20. The positive outcome followed an appeal filed by the company against an order issued by the State Tax Officer.
The appellate authority, specifically the Deputy Commissioner of State Tax (Appeal-1) in Ahmedabad, Gujarat, passed an order on September 30, 2026. This order, received by RITES on October 3, 2026, partially set aside the original demand. RITES had previously made a pre-deposit of ₹1.93 crore when filing its appeal.
Looking ahead, RITES anticipates fiscal year 2027-28 to be a prosperous period for revenue and profits. This optimism stems from its record ₹9,450 crore order book, which is beginning to translate into project execution. The company maintains a strong pace of securing new orders, with expectations to surpass the ₹10,000 crore order book mark soon.
