GST Show Cause Notice for FY 2022-23 Proposing Rs. 5,39,39,622 Liability

Received a GST Show Cause Notice dated Sept 29, 2026 from the Deputy Commissioner, State Tax, Noida, for alleged discrepancies in FY 2022-23 GST returns.

Wed 30 Sep 2026

Proposed Liability

Rs. 5,39,39,622

Tax Amount

Rs. 2,95,71,123

Interest

Rs. 2,13,05,792

Penalty

Rs. 30,62,707

Reply Due Date

October 29, 2026

What happened

Solarworld Energy Solutions received a Show Cause Notice in Form GST DRC-01 dated September 29, 2026 under Section 73(1) of the CGST Act / UPGST Act read with Section 20 of the IGST Act, from the Office of the Deputy Commissioner, State Tax, Sector-3, Noida, Uttar Pradesh.

The notice follows scrutiny of GST returns shared for FY 2022-23.

Money involved

• Total proposed liability: Rs. 5,39,39,622
• Tax: Rs. 2,95,71,123
• Interest: Rs. 2,13,05,792
• Penalty: Rs. 30,62,707

What is alleged

• Difference between tax payable reported in GSTR-9 and GSTR-9C
• Credit notes of ₹2,83,13,705 reported in GSTR-9
• Unreconciled input tax credit (ITC) in GSTR-9C and alleged excess ITC claimed per GSTR-9
• Differences between ITC claimed in GSTR-3B and ITC in GSTR-2A/2B
• Issuance of e-way bills for alleged non-supply transactions
• Outstanding trade payables of ₹60,15,87,600, with the department seeking an ageing-wise ledger to examine potential ITC reversal for non-payment to vendors within 180 days
• Alleged availment of blocked ITC of ₹15,44,358.33 under Section 17(5)

Timeline

• Notice dated September 29, 2026; event noted at 7:40 p.m. IST
• Last date for update reply: October 29, 2026
• Personal hearing before the Proper Officer: October 30, 2026

Company's position

The company states this is at the show cause stage and no order, demand or penalty has been confirmed. It is examining the notice and will file a detailed reply with supporting documents within the prescribed time. Based on its preliminary assessment, it believes it has a good case on merits and does not expect any material impact on its financial position, operations or other activities.

How to read it

A show cause notice is a tax authority asking the company to explain differences it spotted in shared returns. It is not a final demand. The amount named sets the upper end of what the department is currently proposing; the outcome depends on the reply and the hearing. Investors may watch for the company's next update after the October 30, 2026 hearing.

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