Regulatory Authority Details
- Name of Authority: Office of the Commissioner of Central Tax, Guntur Commissionerate, Central GST Sub-Commissionerate, Nellore
- Date of Receipt: 21st August, 2026
- Reference Number: O.R. No. 44/2026-GST/reference GEXCOM/ADJN/GST/ADC/733/2026-Adjn.
Nature of Action
The company has received a Show Cause Notice under Section 74 of the Central Goods and Services Tax Act, 2017 and corresponding provisions of the Andhra Pradesh Goods and Services Tax Act, 2017 read with Section 20 of the Integrated Goods and Services Tax Act, 2017.
Details of Alleged Violations
The SCN alleges two primary violations:
- Short-payment of GST of ₹16,41,145/- due to alleged non-fulfilment of conditions prescribed under Notification No. 40/2017-Central Tax (Rate) dated 23rd October, 2017 and Notification No. 41/2017-Integrated Tax (Rate) dated 23rd October, 2017 in respect of certain supplies made to merchant exporters at concessional rate
- Short-payment of GST of ₹2,19,04,579/- due to alleged short declaration of quantity of black granite blocks dispatched during FY 2020-21 and FY 2021-22
Financial Impact Proposed
The SCN proposes:
- GST demand: ₹2,35,45,724/-
- Equivalent penalty: ₹2,35,45,724/-
- Total proposed demand: ₹4,70,91,448/- (plus applicable interest)
The disclosure explicitly states that these amounts are proposed demands under the SCN and are not final liabilities determined against the company.
Company Response and Status
Based on the advice of its legal advisors, the company is examining the allegations and intends to contest the proposed demand by submitting its detailed response to the authority. The company states there is no immediate impact on its financials, operations or other activities on account of the SCN.
Final Outcome Dependency
The final financial implication, if any, will depend upon the outcome of the adjudication proceedings.