GST show cause cum demand notice proposes Rs. 15.31 crore recovery; company says it has no merits
5paisa Capital has received a Show Cause cum Demand Notice from the Office of the Principal Commissioner of CGST & C. Excise, Mumbai East, dated September 30, 2026, under Section 73(1) of the CGST Act, 2017.
- GST recovery proposed
- Rs. 15.31 crore plus interest and penalty
- Excess ITC alleged
- Rs. 2.04 crore
- Ineligible ITC alleged
- Rs. 0.07 crore
- Excess ITC availed/liable to be reversed
- Rs. 13.20 crore
- Period applicable
- FY 2022-23
GST show cause cum demand notice
- 5paisa Capital Limited has informed the exchanges that it has received a Show Cause cum Demand Notice (SCDN No. 285/CGST/ME/ADC/5Paisa/2026-27) from the Office of the Principal Commissioner of CGST & C. Excise, Mumbai East, dated September 30, 2026.
- The notice has been issued under Section 73(1) of the Central Goods and Services Tax Act, 2017.
- Date of receipt of the communication: September 30, 2026. Period to which it applies: FY 2022-23.
What the notice alleges
- Excess availment of Input Tax Credit (ITC) amounting to Rs. 2.04 crore
- Ineligible ITC amounting to Rs. 0.07 crore
- Excess ITC availed/liable to be reversed amounting to Rs. 13.20 crore
- Taken together, the notice proposes recovery of GST amounting to Rs. 15.31 crore, along with applicable interest and penalty under the CGST Act, 2017.
What the company says
- The company believes the SCDN has no merits.
- It says it has the appropriate documents and supporting records to substantiate its position.
- It will submit its response, along with the requisite documents and explanations, to the notice within the prescribed timelines, before the Adjudicating Authority.
- It states there is no impact on the financial, operational or other activities of 5paisa Capital Limited arising from the notice.
What this means for a reader
A show cause cum demand notice is the tax authority setting out its view of the amounts it believes are payable and asking the company to respond; it is a step in the process rather than the company's own admission of a liability. Here the aggregate amount proposed in the notice is Rs. 15.31 crore, with interest and penalty on top. The company has disputed the position and said it will reply within the timelines. Investors can track the company's further disclosures on the outcome of the proceedings.
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More numbers
- Alleged excess availment of Input Tax Credit (ITC)Rs. 2.04 crore
- Alleged ineligible ITCRs. 0.07 crore
- Alleged excess ITC availed/liable to be reversedRs. 13.20 crore
- Aggregate GST amount proposed to be recoveredRs. 15.31 crore
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