Order Details
Authority: Office of the Commissioner of Central GST, Kolhapur Commissionerate, Maharashtra
Order Reference: Form GST DRC-07 bearing Order-in-Original No. 01/GST-DRC-07/JC/AP/KOP/26-27 dated October 12, 2026
Legal Basis: Passed under Section 73(9) and Section 74A(6) of the CGST Act, 2017 read with corresponding provisions of the MGST Act, 2017
Penalty Amount: Aggregate penalty of ₹32,09,097/- consisting of:
- ₹1,85,391/- under Section 73(9)
- ₹30,23,706/- under Section 74A(5)(i)
Background: The order was passed pursuant to Show Cause Notice dated December 12, 2025 issued by the DGGI, Pune Zonal Unit (Ref: DGGI/INT/INTL/164/2025-Gr A)
Allegations
Nature of Violation: Alleged availment of inadmissible Input Tax Credit on IPO-related expenses
Legal Basis for Allegation: Held to be inadmissible under Sections 17(2) and 17(3) of the CGST Act, 2017
Company Response: The Company had filed detailed written reply dated January 16, 2026 contesting the proposed demand before the Adjudicating Authority
Timeline
- Show Cause Notice Date: December 12, 2025
- Company Reply Date: January 16, 2026
- Order Date: October 12, 2026
- Order Receipt Date: October 19, 2026
Financial and Operational Impact
The Company states:
- Does not accept the DRC 07 order and shall contest it legally
- Believes it has reasonable merit to win in higher Appellate Forum
- Quantum of tax demand with interest and penalties is not expected to have any financial or operational adverse impact
- Has sufficient input credit available to service this demand