GST show cause notice of INR 199.90 million received from Karnataka authorities

Received a show cause notice dated 25th September 2026 from Deputy Commissioner, DGSTO-4 Bengaluru, under Section 73 of the Karnataka GST Act 2017 for April 2022 to March 2023.

Sat 26 Sep 2026

Notice Date

25th September 2026

Amount Involved

INR 199.90 million

Period Covered

April 2022 to March 2023

Statute

Section 73 of the Karnataka GST Act 2017

Allegation

Incorrect availment and utilization of ITC and short payment of tax

What happened

The company disclosed that it received a show cause notice from the Deputy Commissioner, DGSTO-4 Bengaluru, Karnataka.

• Notice dated 25th September 2026, received on 25th September 2026
• Issued under Section 73 of the Karnataka GST Act 2017
• Period covered: April 2022 to March 2023
• Amount involved: INR 199.90 million

The allegation

GST authorities, on scrutiny of GST returns, allege incorrect availment and utilization of input tax credit (ITC) and short payment of tax.

ITC is the credit a business claims for GST already paid on its purchases, which it sets off against GST payable on sales. Authorities are questioning part of that claim for the stated period.

Company's position

The company has stated that the claim made by the authority is not maintainable and that there is no material impact on its financial, operational or other activities due to the issuance of this notice. It is in the process of evaluating the notice and will take necessary steps to respond.

What it means for investors

A show cause notice is a preliminary step asking the company to explain its position; it is not a final demand or penalty order. The outcome depends on the company's reply and the authority's subsequent decision. The figure to track is the INR 199.90 million involved.

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