GST show cause notice proposes Rs. 2,27,53,28,966 demand; company calls it disputed

Skipper Ltd has told the exchanges that the Assistant Commissioner, Office of The State Tax (GST), Bhubneshwar II, Odisha, issued a show cause notice under section 73 of the CGST/OGST Act, 2017.

Thu 1 Oct 2026

Proposed GST Demand

Rs. 2,27,53,28,966

Issuing Authority

Assistant Commissioner, Office of The State Tax (GST), Bhubneshwar II, Odisha

Notice Provision

section 73 of the CGST/OGST Act, 2017

Stated Reason

mismatch in GSTR 1, GSTR-2A and GSTR-3B

Company Position

demand is wholly disputed; no material impact on financial position, operations or other activities

What the update says

The company informed the stock exchanges that the Assistant Commissioner, Office of The State Tax (GST), Bhubneshwar II, Circle Bhubneshwar, Odisha, had issued a show cause notice under section 73 of the CGST/OGST Act, 2017.

The notice proposes a demand of ₹ 2,27,53,28,966 against the company. In the covering letter the same figure is written as Rs. 2,27,53,28,966/-.

The stated reason for the proposed demand is a mismatch in the company's GST returns — GSTR 1, GSTR-2A and GSTR-3B.

What a show cause notice means

A show cause notice is a proposed demand raised by the tax authority. It sets out what the authority thinks is payable and gives the company an opportunity to respond. It is not a final order, and the company's response forms part of the process before the matter moves further.

The company's stated position

• The proposed demand is wholly disputed.
• The company says it is based on erroneous findings and an incorrect appreciation of the facts and applicable provisions of law.
• It says it has strong and substantive grounds to contest the demand and does not accept the liability proposed in it.
• It says the amount stated in the notice does not represent an ascertained liability or any expected financial outflow for the company.
• It says it will take all appropriate legal remedies against the demand.
• It says there is no material impact on the financial position, operations or other activities of the company on account of the notice.

Key figures in the update

• Proposed demand: ₹ 2,27,53,28,966 (also written as Rs. 2,27,53,28,966/-).
• Nature of the issue: mismatch in GSTR 1, GSTR-2A and GSTR-3B.

What a reader can take away

The update puts a proposed GST demand of about Rs. 227.5 crore on record, along with the company's clear statement that it contests the demand and does not treat it as a liability. How the matter progresses will depend on the company's response and the authority's subsequent action, which is not part of this update.

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