GST Show Cause Notice proposing tax of Rs. 54,08,42,587 for FY 2022-23

GST Department has issued a Show Cause Notice dated September 29, 2026 for FY 2022-23.

Wed 30 Sep 2026

Tax Demand Proposed

Rs. 54,08,42,587/-

Interest Proposed

Rs. 43,82,15,854

Penalty Proposed

Rs. 5,40,84,259/-

Notice Date

September 29, 2026

Financial Year

FY 2022-23

What happened

The Exchange has received a Show Cause Notice (SCN) dated September 29, 2026 from the GST Department, in Form GST DRC-01, under section 73(1) of the CGST/MGST Act, 2017.

Amounts proposed

• Tax demand proposed: Rs. 54,08,42,587/-
• Interest proposed: Rs. 43,82,15,854
• Penalty proposed under Section 73(9): Rs.5,40,84,259/-

The allegation

The department alleges that tax has not been paid, or has been short paid, and/or input tax credit has been wrongly availed or utilised for the Financial Year 2022-23.

Company's stand

The company states there is no material impact on its financial, operational or other activities, that it believes it has a strong case on factual grounds, and that it is in the process of update a response before the appropriate authorities.

What it means for investors

An SCN is a proposal, not a final order; the amounts become payable only if confirmed after the company's response and any further proceedings. Investors may watch for the outcome of the company's reply and any subsequent order.

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