GST Show Cause Notice Received Under Section 73(1)

Brigade has received a GST show cause notice under section 73(1) of the Central/Karnataka GST Act, 2017.

Thu 24 Sep 2026

Authority

Central/Karnataka GST Act, 2017 under section 73(1)

Issues Raised

Revenue differences between financial statements and GST returns, alleged excess input tax credit (ITC) availment, and alleged short…

Company Position

Company states the notice has no merits and there is no impact on financial, operational or other activities

What happened

Brigade Enterprises disclosed that it has received a show cause notice (SCN) from the GST authority under section 73(1) of the Central/Karnataka Goods and Services Tax Act, 2017, read with rule 142(1)(a) of the GST Rules and section 20 of the IGST Act, 2017.

What the notice alleges

• A tax proposal on revenue differences between the financial statements and GST returns, including notional incomes recorded as per accounting standards.
• Alleged excess availment of input tax credit (ITC) in the returns compared with the ITC available in the electronic GST reports.
• Alleged short reversal of ITC attributable to exempted turnovers declared in the returns.

Company's position

The company describes the notice as served in gross violation of the principles of natural justice, stating it was issued without providing a reasonable opportunity for update suitable submissions. It says the SCN has no merits and that it will make the necessary submissions before the concerned GST authorities within the stipulated timelines.

On financial implications, the company states there is no impact on its financial, operational or other activities due to this SCN. The quantum of claims is stated as not applicable.

How to read this

A show cause notice is an initial step in which the tax department asks a taxpayer to explain why a demand should not be raised. It is not a final demand or penalty order. The outcome depends on the company's reply and the authority's subsequent adjudication.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.