RACE Eco Chain (RACE) has received a Show Cause Notice from the CGST Department, Noida.

The notice demands why the company shouldn't pay back ₹16.75 Cr in Input Tax Credit (ITC) for FY2020-21 to June 2026. The department alleges RACE availed this ITC from suppliers whose registrations were cancelled. **Impact:** This is a preliminary notice, not a final order.

Management expects no immediate operational impact.

Any financial implications will be determined after the adjudication process. **Company's Response:** RACE believes the ITC was correctly claimed under GST laws.

They are seeking legal advice and will submit a detailed response within 30 days, pursuing all available legal remedies.