Wholly owned subsidiary Si Creva receives GST show cause notice of INR 44,05,68,262 for FY 2022-23

Si Creva Capital Services, the wholly owned subsidiary, has received a GST Show Cause Notice dated September 29, 2026 under Section 73(1) of the MGST Act for FY 2022-23.

Wed 30 Sep 2026

Tax Demand

INR 22,02,84,131

Interest

INR 19,82,55,718

Penalty

INR 2,20,28,413

Total Amount Claimed

INR 44,05,68,262

Notice Date

September 29, 2026

What happened

Si Creva Capital Services Private Limited, a wholly owned subsidiary, has received a Show Cause Notice dated September 29, 2026 from the Deputy Commissioner of State Tax, GST Department, Mumbai, under Section 73(1) of the Maharashtra GST Act, 2017, for financial year 2022-23. The notice is in Form GST DRC-1.

Amounts claimed

• Tax demand raised: INR 22,02,84,131
• Interest: INR 19,82,55,718
• Penalty raised: INR 2,20,28,413
• Total: INR 44,05,68,262

Alleged issues

• Non-reversal or short reversal of input tax credit proportionate to nil rated, exempted or non-GST supply
• Short reversal of ITC in GSTR-3B compared to GSTR-9
• ITC availed in Table 6M of GSTR-9 not specified in Table 6(B to L)
• Excess outward tax in GSTR-1 compared to GSTR-9/GSTR-3B
• Tax short paid as compared to GSTR-9 and GSTR-9C

Company's position

The company firmly believes the SCN has no merits. Si Creva will take all necessary actions to present and defend its case before the adjudicating authorities and address the demand. The company does not envisage any material impact on the financials, operations or other activities of the company or Si Creva arising from this notice.

What it means for investors

A show cause notice is a preliminary step in which the tax department asks the taxpayer to explain why a demand should not be confirmed; it is not a final order. The figure of INR 44,05,68,262 is the amount claimed at this stage and may change after adjudication or appeal.

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