GST Show Cause Notice of ~Rs. 71.24 Crore received for FY 2022-23

The company received a Show Cause Notice from the Joint Commissioner of State Tax, Uttar Pradesh, under Section 74 of CGST/UPGST Act.

Mon 28 Sep 2026

Tax Amount Proposed

~Rs. 71.24 Crore

Notice Period

FY 2022-23

SCN Date

September 26, 2026

Notice Received Date

September 28, 2026

Violation Type

Alleged short payment of tax / excess ITC availment

What happened

The company informed the exchanges that it has received a Show Cause Notice (SCN) from the Joint Commissioner of State Tax, Uttar Pradesh, issued under Section 74 of the CGST Act, 2017 / UPGST Act, 2017.

Key details

• Period involved: FY 2022-23
• Tax proposed: ~Rs. 71.24 Crore, along with applicable interest under Section 50 and penalty under Section 74
• SCN dated September 26, 2026, received on September 28, 2026

What is alleged

The notice asks the company to clarify GST applicability on certain other expenses / other income recorded in its financial statements, and to explain alleged availment of input tax credit (ITC) on certain supplies said to be in violation of Section 16 of the CGST/UPGST Act. Broadly, it concerns alleged short payment of tax and excess availment of ITC.

Company's position

Based on its own assessment, the company states the demand is not maintainable and without merits, and that it expects the demand to be set aside during adjudication proceedings. It is taking steps to file a detailed reply to the SCN.

What it means for investors

A show cause notice is a preliminary step, not a final demand or a confirmed liability. The amount becomes payable only if it is confirmed after adjudication, and companies can contest such orders through appeals. The company has stated it does not foresee any material impact on its financial, operational or other activities. Investors may want to watch for further updates on the adjudication outcome.

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