GST Show Cause Notice of Rs. 13,34,35,202 Received for FY 2022-23
Company received a GST show cause notice (DRC 01) from the Deputy Commissioner of State Tax, Nashik, on September 24, 2026, under Section 73(1) of CGST & MGST Act, 2017.
- Total GST Demand
- Rs. 13,34,35,202/-
- Tax Component
- Rs. 7,32,16,851/-
- Interest Component
- Rs. 5,28,96,667/-
- Penalty Component
- Rs. 73,21,684/-
- Financial Year Under Notice
- FY 2022-23
What happened
The company received a show cause notice (DRC 01) from the Deputy Commissioner of State Tax, AMBAD_502, Nashik, Maharashtra, under Section 73(1) of the CGST Act, 2017 and MGST Act, 2017 on September 24, 2026 at 17:36 hrs.
The demand
- Total demand: Rs. 13,34,35,202/-
- Tax: Rs. 7,32,16,851/-
- Interest: Rs. 5,28,96,667/-
- Penalty: Rs. 73,21,684/-
The objections relate to financial year 2022-23.
Grounds raised by the department
- Excess input tax credit (ITC) availed in GSTR 3B than available in GSTR 2B/2A
- Short liability declared in GSTR 3B/GSTR 9 compared with liability shown in GSTR 1
- Outward tax liability discharged in GSTR 3B/GSTR 9 lower than outward tax liability as per e-way bills generated
Company's position
The company states this is only a show cause notice at this stage, that it believes it has strong legal and factual grounds, and that it will take all necessary actions to present and defend its case before the relevant authorities. It says there is no expected material financial impact and that it does not consider it likely that the potential demand will materialise as a claim resulting in liability. A response to the notice is being prepared.
What it means for investors
A show cause notice is a preliminary step in which the tax department asks the company to explain discrepancies; it is not a final order. The amount at stake is quantified at Rs. 13,34,35,202/-, and the outcome depends on the adjudication after the company files its reply.
More numbers
- Total GST demandRs. 13,34,35,202/-
- Tax componentTax-Rs. 7,32,16,851/-
- Interest componentInterest Rs. 5,28,96,667/-
- Penalty componentPenalty Rs. 73,21,684/-
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