RITES Gets Rs 38.30 Crore Tax Relief, Gujarat Authority Partially Sets Aside FY20 Demand

Mumbai-based engineering firm RITES Ltd has received Rs 38.30 crore in tax relief after Gujarat’s tax appellate authority partially dismissed a demand covering taxes, interest, and penalties from the financial year 2019-20. The order was issued on September 30, 2026, by the Deputy Commissioner of State Tax (Appeal-1), Division-1, in Ahmedabad, and received by RITES on October 3.

The engineering company had contested a demand order issued by the State Tax Officer, and the appellate authority allowed its appeal, granting Rs 38,30,49,704 in relief. RITES filed an appeal, depositing Rs 1.93 crore, and now expects no further tax, interest, or penalty liability under the demand order, according to applicable law.

The financial impact of the proceedings was identified as the relief granted. Separately, RITES anticipates a strong revenue and profit outlook for FY27-28, driven by its record Rs 9,450 crore order book entering execution. The order book comprises projects spread over three to four years, beginning to generate revenue. RITES Chairman and Managing Director Rahul Mithal stated that the current year marks a shift from consolidation towards faster growth, with 128 orders secured in the latest quarter, maintaining a pace of roughly one order daily.

Mithal expects the order book to surpass Rs 10,000 crore in the coming quarters, citing railway projects as potential business opportunities. The government's approval of Rs 20,800 crore for railway multitracking projects across nine states could further boost RITES's business prospects.