GST show cause notice proposes ₹2.59 Crores demand in tax, interest and penalty

Max Estates has received a show cause notice in form GST DRC-01 dated September 26, 2026 from the Uttar Pradesh State Tax authorities for FY23, proposing a demand of ₹2.59 Crores — tax of ₹1.35 Crores.

Thu 8 Oct 2026

Total Proposed Demand

₹2.59 Crores

Tax Component

₹1.35 Crores

Interest and Penalty

₹97.25 Lakhs and ₹26.65 Lakhs

What the company has intimated

Max Estates has informed the stock exchanges that it has received a show cause notice in form GST DRC-01 dated September 26, 2026 from the Office of the Deputy Commissioner, State Tax, Sector-3, Gautam Buddha Nagar, Uttar Pradesh. The notice is for FY23 and has been issued under Section 73 of the Central Goods and Services Tax Act, 2017 and the Uttar Pradesh Goods and Services Tax Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017.

The update states that the notice relates to Max Ventures and Industries Limited, which was merged into the company effective July 31, 2023, with the appointed date of the merger being April 1, 2022.

The proposed demand

• Total proposed demand: ₹2.59 Crores (tax, interest and penalty together)
• Tax: ₹1.35 Crores
• Interest: ₹97.25 Lakhs
• Penalty: ₹26.65 Lakhs

What the notice is about

As per the update, the notice is primarily in relation to GST return and reconciliation matters for FY23, including:

• Differences in annual return / reconciliation statement
• Input tax credit related reconciliations
• Credit note related details
• Other GST reconciliation matters

Where the matter currently stands

• The matter is at the show cause notice stage and no final demand or order has been passed.
• The company says it is in the process of reviewing the matter and will take necessary actions, including update of a reply, in accordance with applicable laws.
• The final financial impact, if any, will depend on the outcome of the adjudication proceedings.
• The company states that there is no impact on its operations or other activities at this stage.
• The company will keep stakeholders informed about any material developments.

How a reader can look at it

This is a notice, not a final order. The amount of ₹2.59 Crores is what the tax authorities have proposed, and it includes tax, interest and penalty components. The company has said it will reply and that the eventual financial impact depends on how the proceedings conclude. The update also states that operations and other activities are not impacted at this stage.

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.