GST appellate order confirms Rs. 4,60,28,908 ITC demand for FY 2020-21; appeal planned

The Appellate Joint Commissioner (ST), Malkajgiri Division, Hyderabad has upheld a GST demand for FY 2020-21.

Tue 29 Sep 2026

ITC Reversal Amount

Rs. 2,56,44,999/-

Interest Amount

Rs. 1,78,19,409/-

Penalty Amount

Rs. 25,64,500/-

Total Disputed Amount

Rs. 4,60,28,908/-

Financial Year

FY 2020-21

What happened

The Appellate Joint Commissioner (ST), Malkajgiri Division, Hyderabad passed an order under the CGST Act, 2017 and TGST Act, 2017 for FY 2020-21, confirming a demand relating to reversal of an alleged excess claim of input tax credit (ITC). The order was received on 28th September 2026.

Amounts confirmed

• ITC reversal: Rs. 2,56,44,999/- (CGST Rs. 81,04,008/-; SGST Rs. 81,04,008/-; IGST Rs. 94,36,983/-)
• Interest: Rs.1,78,19,409/-
• Penalty: Rs. 25,64,500/-
• Total disputed amount: Rs. 4,60,28,908/-

The allegation

The authority upheld the earlier order dated 28.02.2025 of the Original Authority, which alleged excess ITC claimed in GSTR 3B compared with GSTR 2A (excess ITC as per table 8D of GSTR 9) for FY 2020-21, and ordered its reversal with interest and penalty. The receipt of the 28.02.2025 order had been intimated to the exchanges on 01.03.2025.

Next step

The company intends to file an appeal before the GST Appellate Tribunal against the present order.

Company's view

The company states there is no material impact on its financials or operations due to the order.

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