GST Show Cause Notice of Rs. 59,43,79,402 Received on TDR Procurement for FY 2022-23
Sunteck Realty received a GST show cause notice (Form GST DRC-01, Section 73) on 24th September 2026 for FY 2022-23, demanding Rs. 59,43,79,402 (including interest and penalty) on purchase of Transferable Development Rights.
By ScoutQuest · · 1 min read
- GST Demand Amount
- Rs. 59,43,79,402 (including interest and penalty)
- Notice Form and Section
- Form GST DRC-01, Section 73 of the GST Act
- Financial Year
- FY 2022-23
- Notice Date
- 24th September 2026
- Subject Matter
- Tax liability on procurement of Transferable Development Rights (TDR)
What happened
Sunteck Realty received Form GST DRC-01, a demand cum show cause notice (SCN), from the Office of Goods and Services Tax on 24th September 2026.
- Issued under Section 73 of the GST Act
- Relates to Financial Year 2022-23
- Subject: tax liability on procurement of Transferable Development Rights (TDR) from the open market, originally granted by Local Bodies
- Amount: Rs. 59,43,79,402 including interest and penalty
Company's position
The company firmly believes the SCN has no merits, stating that no GST is applicable on such transactions as they are neither a supply of goods nor a supply of services, and hence outside the scope of GST.
It also says the notice is incorrect because it considers an amount twice the actual amount, and that a detailed comprehensive audit was already concluded by the tax authorities for that financial year.
Next steps
The company will file a reply disputing the demand before the Office of the Deputy Commissioner of State Tax, Mazgaon, Mumbai, and will take necessary actions to present and defend its case before the adjudicating authorities.
Stated impact
The company states there is no expected material financial impact and no impact on its financial, operational or other activities arising from the SCN.
How to read this
A show cause notice is an early stage of a tax dispute, not a final order. The final outcome depends on the adjudicating authority. The quantum named, Rs. 59,43,79,402, is what investors can weigh against the company's stated view that the demand is unwarranted and overstated.
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More numbers
- GST demand including interest and penaltyRs. 59,43,79,402/-
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