Key Event
The company received a Show Cause Notice (SCN) on 25th May 2026 from the Directorate General of GST Intelligence (DGGI), Bengaluru Zonal Unit. The notice was issued under Section 74(1) of the Central Goods and Services Tax Act, 2017, read with corresponding provisions of the Karnataka Goods and Services Tax Act, 2017 and Section 20 of the Integrated Goods and Services Tax Act, 2017.
Financial Demand Details
- Demand Amount: ₹20,51,00,281 (Rupees Twenty Crore Fifty-One Lakh Two Hundred Eighty-One only)
- Interest: Applicable under Section 50(3) of the CGST Act, 2017 read with Rule 88B of the CGST Rules, 2017
- Penalty: Equivalent to the ineligible ITC demanded, under Section 74(1) of the CGST Act, 2017
Allegations
The SCN alleges ineligible availment of input tax credit (ITC) amounting to ₹20,51,00,281 during the period September 2022 to March 2024 (covering Financial Years 2022-23 and 2023-24).
Company Response
The company is evaluating the SCN and, based on advice from its tax advisors, shall file a detailed reply with the adjudicating authority within the prescribed timelines. The company intends to pursue all legal remedies available to it.
Financial Implications
No immediate financial impact on the company at this stage. The communication is a Show Cause Notice only, and no order has been passed. No penalty, restriction, or sanction has been imposed on the company as of the disclosure date.
Communication Details
- Type: Show Cause Notice received through email communication
- Date of Receipt: 25th May 2026
- Issuing Authority: The Additional Director, Directorate General of GST Intelligence (DGGI)