GST Search and Seizure Proceedings Concluded; ₹2.0 Crore Net Cost
GST search and seizure proceedings that began on 23rd September, 2026 at the company's and its wholly-owned subsidiary's premises concluded on 29th September, 2026.
- GST Search Duration
- 23rd September, 2026 to 29th September, 2026
- GST Liability (RCM)
- ₹9.9 crore
- Interest and Non-creditable Tax
- ₹2.0 crore
- Net Financial Impact
- ₹2.0 crore
What happened
Search and seizure proceedings under Section 67 of the Maharashtra Goods and Services Tax Act, 2017 were initiated on 23rd September, 2026 at the registered office and manufacturing units of the company and its wholly-owned subsidiary in Maharashtra. These proceedings concluded on 29th September, 2026.
Amounts determined
- GST liability of ₹9.9 crore under the Reverse Charge Mechanism (RCM). The company states it is eligible to avail the entire amount as Input Tax Credit, subject to applicable provisions of law.
- Interest and certain non-creditable tax liabilities aggregating ₹2.0 crore. The company has decided to discharge and settle this amount.
Net impact
The company states that the ₹2.0 crore of interest and non-creditable tax represents the net financial impact or cost arising from the proceedings, because the ₹9.9 crore RCM liability is creditable.
On operations
The company reiterates that the proceedings caused no disruption to business, with manufacturing and other operations continuing in the normal course, and no other material impact on financials, business operations or other activities.
What a novice should note
Reverse Charge Mechanism means the buyer, rather than the supplier, pays GST directly to the government. Input Tax Credit allows a business to offset the GST it pays against GST it collects, so a creditable amount is typically not an outright cost. Interest and non-creditable tax, however, cannot be set off and are an actual expense.
The company adds that it has extended and will continue to extend full co-operation to the authorities.
More numbers
- GST liability determined under Reverse Charge Mechanism₹9.9 crore
- Interest and non-creditable tax liabilities (net financial impact)₹2.0 crore
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