Music Broadcast Limited has received a Show Cause Notice (SCN) from the Office of the Deputy Commissioner, State Tax, Sector-2, Lucknow-I, Uttar Pradesh (State GST Authority).
The notice was issued under Section 73(1) of the Uttar Pradesh Goods and Services Tax Act, 2017 read with the Central Goods and Services Tax Act, 2017, and was received by the Company on September 21, 2026 (notice dated September 21, 2026).
The SCN alleges short payment of tax and irregular/excess availment of Input Tax Credit claims for FY 2022-23, with a total demand of approximately ₹11,57,81,759 comprising:
- Tax demand: ₹10,52,56,145
- Penalty: ₹1,05,25,614
The specific allegations include:
1. Short payment of output tax of approximately ₹5,723.81 lakh due to alleged mismatch between liability reflected in GSTR-7/GSTR-8 and GSTR-3B, sought to be taxed at 18%
2. Alleged ineligible ITC of ₹6,72,923 (IGST) and ₹7,76,682 each (CGST/SGST) claimed on inward supplies from certain vendors, alleged to be not in the course/furtherance of business and hence restricted under Section 17(5)
3. Shortfall of ₹639 each in CGST/SGST paid under reverse charge mechanism, together with applicable interest
The Company states it does not agree with the allegations and proposes to submit a detailed reply supported by relevant records and reconciliations within the prescribed timeline.
Regarding financial impact, the Company notes this is presently a SCN calling for a response and does not constitute a final demand or order. The Company intends to contest the matter on merits and does not expect any material financial impact at this stage. Any impact on financial, operational or other activities will be assessed and disclosed appropriately as the matter progresses.
The disclosure is made under SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, as amended read with Regulation 30 of Listing Regulations and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25 dated February 25, 2025.