Northern Arc Capital Limited has received a GST order dated December 24, 2025, from the Joint Commissioner, Office of the Commissioner of GST & Central Excise, Chennai South Commissionerate. The order imposes a GST demand of ₹2,32,51,066 (Rupees Two Crore Thirty-Two Lakhs Fifty-One Thousand Sixty-Six) along with a penalty of the same amount and applicable interest. The demand is related to disallowance of GST input credit due to differences in GSTR-3B vs GSTR-2A, input credit availed under the wrong head (CGST and SGST instead of IGST and vice versa), and alleged non-payment of IGST under RCM on imports of services on borrowings located outside India. The demand is levied under Section 74(9) and Section 122(2) of the CGST/TSGST Act, 2017, and corresponding provisions of the IGST Act, 2017. The company is currently evaluating its course of action, including the possibility of filing an appeal against the order with the appropriate authority. Northern Arc Capital Limited stated that, based on its assessment, the revised demand is not maintainable and it does not envisage any relevant impact on its financials, operations, or other activities.