NSE/BSE Codes: NSE: SUNTECK, BSE: 512179
Summary of Key Information:
Nature of Event / Disclosure:
Regulatory disclosure regarding receipt of Form GST DRC-01 (demand/show cause notice) from Goods and Services Tax department under Section 73 of GST Act.
Involved Parties / Authorities:
- Department of Goods and Service Tax
- Office of the Deputy Commissioner of State Tax, Mazgaon, Mumbai
- Local Bodies (mentioned as original grantors of TDR)
Date / Timeline of Event:
- Notice received: 24th September 2026
- Disclosure made to exchanges: 25th September 2026
- Financial Year in question: 2022-23
Brief Description of Outcome / Dispute:
The company has received a show cause notice for tax liability on procurement of Transferable Development Rights (TDR) from open market. The TDR was originally granted by Local Bodies. The notice aggregates to ₹59,43,79,402/- including interest and penalty components.
Impact of Outcome:
Financial Impact:
No material financial impact expected. The company firmly believes the SCN has no merits as no GST is applicable on such transactions. The company states the notice is incorrect as it considers the amount two times of the actual amount. A detailed comprehensive audit has already been concluded by tax authorities for the said financial year.
Operational / Business / Strategic Impact:
No impact on financial, operational or other activities of the Company arising from the said SCN. The company will file a reply to the SCN disputing the demand raised.
Other Implications:
The company maintains that the transaction is neither a supply of goods nor a supply of services, and accordingly such transaction is out of the scope of GST.
Next Steps / Required Actions:
The company will file a reply to the SCN before the Office of the Deputy Commissioner of State Tax, Mazgaon, Mumbai, disputing the demand raised under the said notice. The company shall take all necessary actions to present and defend its case before the adjudicating authorities.