Innovision Limited has received a Show Cause Notice in FORM GST DRC-01 dated August 21, 2026, from the Principal Commissioner, Central Goods and Services Tax, Gurugram, Haryana. The notice was received by the Company on August 25, 2026.
The Show Cause Notice has been issued under Section 74 of the Central Goods and Services Tax Act, 2017 (CGST Act) read with the corresponding provisions of the Haryana Goods and Services Tax Act, 2017 (HGST Act) and Section 20 of the Integrated Goods and Services Tax Act, 2017 (IGST Act).
The notice proposes recovery of:
- CGST amounting to ₹5,35,20,614.07
- SGST amounting to ₹5,35,20,614.07
- Total aggregate demand: ₹10,70,41,228.15
- Along with applicable interest and penalty
The tax period covered is from FY 2020-21 to FY 2024-25. The notice concerns exemption claims made by the Company in respect of certain supplies reported in its GST returns, specifically related to User Fee (Toll) Collection Services.
The Company notes that this matter is substantially similar to an earlier case decided in its favor by the Commissioner, CGST (Appeals), Dehradun. The Order-in-Appeal dated August 11, 2026 (C. No. 18/GST/Commr/APPL/DDN/2026-27/1544) set aside the substantive tax demand under Section 74, along with corresponding interest and major penalties, in respect of the Company's Uttarakhand GST registration.
Based on its preliminary assessment and the favorable appellate order, the Company believes it has substantive grounds to contest the proposed demand, interest, and penalty. The Company intends to take appropriate steps before the competent authority and will rely on the Dehradun appellate order in its defense.
As the communication is a Show Cause Notice and no final demand has been adjudicated, the Company does not expect any immediate material impact on its financial position, operations, or other activities. The Company will continue to evaluate the matter and take appropriate legal steps in the proceedings.