GST show cause notice: Rs. 2,31,85,885 tax, interest and penalty proposed
GST show cause notice received.
- Proposed Tax
- Rs.1,16,66,378/-
- Proposed Interest
- Rs.1,00,25,137/-
- Proposed Penalty
- Rs.14,94,370/-
- Total Claim
- Rs. 2,31,85,885/-
- Notice Period
- F.Y. 2022-23, under Section 73(1) of CGST/MGST Act
What has happened
The company has received a Show Cause Notice under Section 73(1) of the CGST/MGST Act, 2017 for F.Y. 2022-23, following GST audit proceedings. The GST Authority uploaded it on the GST portal and it was received on September 30, 2026.
Who issued it
Office of the Deputy Commissioner of State Tax, THA-AUD-E-0004 (Thane Audit_504), Department of Goods and Services Tax, Government of Maharashtra.
What the notice proposes
- Tax: Rs.1,16,66,378/-
- Interest: Rs.1,00,25,137/-
- Penalty: Rs.14,94,370/-
- Total quantum of claims: Rs. 2,31,85,885/-
The notice proposes a penalty of Rs. 14.94 lakhs, which is subject to adjudication. As on date, no penalty, restriction or sanction has been imposed.
What the audit objections relate to
- Delayed payment interest
- Disallowance of credit notes
- RCM on import of services
- Ineligible ITC
- ITC reversal for payments after 180 days
- RCM on renting of motor vehicles and travelling expenses
- ITC disallowance on insurance claim
- Disallowance of ISD credit for non-production of relevant documents
What the company says
The company states there is no immediate financial impact at this stage. It is in the process of evaluating the notice and, based on advice from its tax advisors, shall file a detailed reply with the adjudicating authority within the prescribed timelines, and shall pursue all legal remedies available to it.
How a reader can look at this
A show cause notice is a step in an adjudication process and not a final order. The amounts mentioned are proposed and remain subject to the outcome of the company's reply and the adjudicating authority's decision. The company's own stated position is that there is no immediate financial impact at this stage and that it will contest the matter through the available legal route.
More numbers
- Tax proposed in the show cause noticeRs.1,16,66,378/-
- Interest proposed in the show cause noticeRs.1,00,25,137/-
- Penalty proposed in the show cause noticeRs.14,94,370/-
- Total quantum of claimsRs. 2,31,85,885/-
- Penalty proposed, subject to adjudicationRs. 14.94 lakhs
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