GST show cause notice: excess input tax credit of ₹285,488,700, interest ₹224,429,799, penalty ₹57,117,740

Received on October 5, 2026: a show cause notice dated September 29, 2026 from the Deputy Commissioner of State Tax, GST, Maharashtra.

Tue 6 Oct 2026

Excess Input Tax Credit (FY 2022-23)

₹285,488,700/-

Interest

₹224,429,799/-

Penalty

₹57,117,740/-

GST show cause notice received

On October 5, 2026, the company received a show cause notice dated September 29, 2026 from the Deputy Commissioner of State Tax, Department of Goods and Services Tax, Maharashtra. The notice is issued under Section 73(1) of the Maharashtra Goods and Services Tax Act, 2017 and relates to FY 2022-23.

Amounts stated in the notice

• Excess availment of input tax credit: ₹285,488,700/-
• Interest: ₹224,429,799/-
• Penalty: ₹57,117,740/-

The notice says "primarily" excess availment of input tax credit, so these are the amounts as stated in the notice for FY 2022-23.

What the company has said

• It believes it has adequate factual and legal grounds to contest the allegations.
• It is evaluating the allegations and preparing a detailed response, supported by relevant reconciliations, records and legal submissions, to be shared within the prescribed timeline.
• The notice is at a preliminary stage and does not constitute a final order or confirmed demand.
• It does not presently envisage any material impact on its financial position, operations or other activities.

How to read this

A show cause notice asks the company to explain its position on the tax authority's allegations. At this stage it is not a final order and not a confirmed demand. The company has stated its intention to contest and to file a response within the prescribed timeline. The amounts involved are the figures stated in the notice itself.

The disclosure states that the company is preparing its reply, so the next visible steps would be the update of that response and any further communication or order in the matter. This is a tax proceeding, and the company's stated position is that it sees no material impact on its financial position or operations at present.

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