GST Show Cause Notice of Rs. 273.40 Crore Received for FY 2022-23

Received a GST show cause notice dated September 25, 2026 from Deputy Commissioner, State Tax, Lucknow (UP) for FY 2022-23.

Mon 28 Sep 2026

Tax Liability

Rs. 149.21 Crore

Interest

Rs. 109.27 Crore

Penalty

Rs. 14.92 Crore

Total Amount

Rs. 273.40 Crore

Notice Date

September 25, 2026

What happened

The company informed the exchanges that it received a Show Cause Notice in Form GST DRC-01 under Section 73(1) of the Uttar Pradesh Goods and Services Tax Act, 2017, for the financial year 2022-23. The notice is dated September 25, 2026 and was issued by the Deputy Commissioner, State Tax, Sector-1, Lucknow, Uttar Pradesh.

Amounts alleged

• Tax liability: Rs. 149.21 Crore
• Interest: Rs.109.27 Crore
• Penalty: Rs. 14.92 Crore
• Aggregate: Rs. 273.40 Crore

Company's reading of the demand

The company has noted that the proposed demand appears to have been computed, inter alia, with reference to pan India level financial information taken from the signed financials for FY 2022-23, without establishing the corresponding transaction level liability attributable to the company's Uttar Pradesh GST registration.

Company's stance

The company is of the considered view that the notice is devoid of merits and not sustainable on facts, in law or in procedure, and intends to contest it comprehensively within the prescribed timelines. It does not envisage any material impact on its financials, operations or other activities arising from this notice.

Timing of disclosure

The notice was received after office hours on Friday, September 25, 2026, and the disclosure was made on September 28, 2026, the first working day following receipt.

How to read this

A show cause notice is a preliminary step in which the tax authority asks the company to explain why a demand should not be raised; it is not a final order. The perception created is of a sizeable tax claim, though the company has stated its intention to contest and expects no material impact.

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