Material Subsidiary Served GST Show Cause Notice; GST Demand, Interest and Penalty Proposed

Smartlink Holdings' material subsidiary Digisol Systems has been served a GST Show Cause Notice dated Sept 28, 2026 for the tax period April 2022 to March 2023.

Tue 6 Oct 2026

GST Demand Proposed

₹ 1,76,69,173/-

Interest Proposed

₹ 1,41,33,403/-

Penalty Proposed

₹ 17,70,054/-

Smartlink Holdings Limited has informed the exchanges that its material subsidiary, Digisol Systems Limited, has been served with a Show Cause Notice under section 73 of the CGST/SGST/IGST Act, 2017.

What the notice is about

• The SCN is dated September 28, 2026 and was received by Digisol on October 05, 2026, and was intimated to the company the same day.
• It has been issued by the State Tax Officer, Maharashtra Goods and Services Tax Department.
• It follows scrutiny of Digisol's GST returns for the tax period April 2022 to March 2023.

What the authority has flagged

• Excess outward tax reported in GSTR-1 compared with GSTR-9, for which the proposed tax liability has been determined at ₹1,66,717.29.
• Excess input tax credit availed in GSTR-3B/GSTR-9 that is not confirmed in GSTR-2B/GSTR-2A, for which the proposed tax liability has been determined at ₹1,74,74,992.52.

What has been proposed

• GST demand of ₹ 1,76,69,173/-, made up of IGST ₹ 1,75,00,541/-, CGST ₹ 84,316/- and SGST ₹ 84,316/-.
• Interest proposed in the SCN: ₹ 1,41,33,403/-.
• Penalty proposed in the SCN: ₹ 17,70,054/-.

Digisol has been called upon to show cause why this liability should not be levied, and to pay the applicable interest and penalty under section 73/74 in form DRC-03 if the liability is accepted by it.

What the company says about the impact

The company states there is no immediate impact on the financial, operational or other activities of Digisol or the company solely upon receipt of the SCN. The financial impact, if any, will be limited to the extent of liability, if any, finally determined upon conclusion of the proceedings.

What happens next

Digisol, the material subsidiary, will file a detailed reply with facts, figures and justifications before the authority within the prescribed timelines.

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