Date: September 1, 2026
Regulatory Disclosure
Notice Details
Issuing Authority: Deputy Commissioner of State Tax, CT & GST Circle, Balasore, Odisha
Notice Type: Show Cause Notice (DRC 01)
Legal Basis: Section 74 of CGST Act, 2017 & OGST Act, 2017
Receipt Date & Time: August 31, 2026 at 11:50 a.m. (IST)
Financial Year: 2020-21
Nature of Dispute
The GST Department has raised objections on the following six major concerns:
- Discharge of CGST & SGST liabilities without due interest
- Issuance of Credit Notes beyond time limit
- Receipts of Credit Notes for inward supplies & reduction of ITC thereon
- Availed blocked Credit under Section 17(5) of CGST/SGST Act
- Disallowance of Input Tax Credit on contravention of Section 16(2)(c) of CGST/SGST Act
- Liability under RCM transactions
Financial Details
Total Demand: ₹3,89,21,097/- (Three Crore Eighty-Nine Lakh Twenty-One Thousand Ninety-Seven Rupees)
Breakdown:
- Tax: ₹1,30,83,256/-
- Interest: ₹1,27,54,585/-
- Penalty: ₹1,30,83,256/-
Expected Financial Implications
The GST Department has proposed to recover the amount of ₹3,89,21,097/- under Section 74 of CGST & OGST Act, 2017. However, the company states:
- This is only a show cause notice at this preliminary stage
- The company firmly believes it maintains strong legal and factual grounds
- The company will take all necessary actions to present and defend its case
- There is no expected material financial impact
- The company does not consider it likely that this potential demand will materialize as a claim
- The company is in the process of preparing a response to the Show Cause Notice