Key Quantitative Figures
- Show Cause Notice Reference: ZD3305262478338 dated May 25, 2026
- Period under scrutiny: April 2022 to February 2023
- Alleged under-reported taxable turnover: ₹7,516.25 crores
- Proposed tax demand: ₹1,352.92 crores
- Proposed interest: 18% per annum
- Proposed penalty: 10% of tax amount
- Company's reported taxable turnover in GSTR-3B: ₹2,017.27 crores
- Actual taxable value in TDS returns per company: ₹109.48 crores
Dates of Action
- Show Cause Notice issued: May 25, 2026
- Disclosure to exchanges: May 28, 2026
- Previous notice received: May 15, 2023 (Form GST ASMT-10, Reference: ZD330523063375I)
Parties Involved
- Issuing authority: Office of the Assistant Commissioner (ST), Royapuram (C) Assessment Circle, North Division, Chennai
Company's Position and Rationale
The company strongly denies all allegations in the show cause notice, stating:
1. The notice is factually incorrect and inconsistent with GST common portal records
2. The company duly disclosed all taxable supplies totaling ₹2,017.27 crores in GSTR-3B returns, not ₹8,140.63 crores as alleged
3. The actual taxable value in TDS returns filed by deductors aggregates to only ₹109.48 crores, not ₹15,656.88 crores as alleged
4. The current notice was issued without considering previous submissions made to a different officer
5. The company believes the demand lacks factual and legal basis and is not sustainable
Present Status and Expected Outcome
The company is in the process of filing a detailed reply to the show cause notice along with all supporting documents and reconciliations. Based on legal advice and internal assessment, the company believes it has a strong case on merits and legal grounds and reasonably expects that the proceedings will be dropped.
Financial Impact
Potential financial impact includes the proposed tax demand of ₹1,352.92 crores plus interest and penalty, though the company contends the demand is not justified.