GST Show Cause Notice of Rs.10.70 crore on wholly owned subsidiary NU Vista

Bihar State Tax authority has issued a Show Cause Notice to NU Vista Limited, a wholly owned subsidiary.

Tue 29 Sep 2026

Proposed Demand

Rs.10,70,08,912/-

Fiscal Year

FY 2022-23

Penalty Rate

10%

Grounds

Denial of Input Tax Credit brought forward, ITC already reversed temporarily, and tax on advances received for goods

Entity

NU Vista Limited, wholly owned subsidiary

What was disclosed

Nuvoco Vistas Corporation Limited informed the stock exchanges that the Dy. Commissioner, State Tax (Audit), Central Division, Patna, Bihar has issued a Show Cause Notice to NU Vista Limited, a wholly owned subsidiary of the company.

The amount involved

• Proposed demand under section 73 of the CGST Act, 2017 for FY 2022-23: Rs.10,70,08,912/-
• Consequential interest and a 10% penalty are also proposed.

Grounds raised in the notice

• Proposed denial of credit for Input Tax Credit brought forward from the previous year.
• Confirming demand of Input Tax Credit already reversed temporarily.
• Proposed imposition of tax on advances received for goods.

Company's position

The company states the Show Cause Notice will not be sustained as the demand is against the provisions of law, and that supporting documents with legal precedents will prove the allegations wrong. It says there will be no major financial impact on the company. A reply will be shared before the Dy. Commissioner, State Tax (Audit), Central Division, Patna, Bihar.

What it means for investors

A Show Cause Notice is a preliminary step in which a tax authority asks a company to explain why a proposed demand should not be raised. It is not a final order. The matter relates to a wholly owned subsidiary, so any eventual outcome would flow through the group accounts. The next step is the company's reply and the subsequent decision of the tax authority.

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