GST Show Cause Notice of Rs. 23,73,76,507 Received Over Alleged Excess Input Tax Credit for FY 2022-23
Sanofi India has received a Show Cause Notice from Karnataka GST authorities alleging excess Input Tax Credit claimed for April 2022 to March 2023.
By ScoutQuest · · 1 min read
- Tax Demand
- Rs.14,43,01,828
- Interest
- Rs.9,30,74,679
- Total Liability
- Rs. 23,73,76,507
- Period
- April 2022 to March 2023
- Allegation
- Excess Input Tax Credit claimed
What was shared
Sanofi India informed the exchanges that it has received a Show Cause Notice under Section 73 of the Karnataka Goods and Services Tax Act, 2017.
The allegation
- Issued by the Commercial Tax Officer (Audit)-6.1, DGSTO-6, Bengaluru.
- Alleges the company availed excess Input Tax Credit for the period April 2022 to March 2023 (FY 2022-23).
Amounts involved
- Proposed tax liability: Rs.14,43,01,828
- Interest: Rs.9,30,74,679
- Aggregate: Rs. 23,73,76,507
What Input Tax Credit means
Input Tax Credit lets a business offset GST it paid on purchases against GST it collects on sales. Authorities are alleging more credit was claimed than permitted for that year.
Company's position
- The company is in the process of responding to the notice after obtaining the relevant facts on which the demand was determined.
- It is examining the notice with its consultants and tax advisors and will submit a reply within the prescribed time.
- It states it does not envisage any adverse impact on the financials, operations or other activities arising from this notice.
How to read this
A Show Cause Notice is a preliminary step, not a final order. The company gets an opportunity to reply before any demand is confirmed, and such matters can move to appellate forums. The disclosed aggregate of Rs. 23,73,76,507 is the amount at stake as proposed today.
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More numbers
- Proposed tax liabilityRs.14,43,01,828
- Interest proposedRs.9,30,74,679
- Aggregate demandRs. 23,73,76,507
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