Birla Corp Subsidiary Receives GST Show Cause Notice for ₹15.02 Crore ITC Claim
Birla Corporation's subsidiary, RCCPL, received a GST Show Cause Notice for ₹15.02 crore related to ineligible Input Tax Credit for FY23. The company believes the notice lacks merit and expects no financial or operational impact at this stage.
The notice concerns a significant amount of ₹15.02 crore in potential tax liability. Although the company is contesting it and foresees no immediate impact, a negative outcome could lead to financial penalties and affect the subsidiary's financial health.
The company has received a Show Cause Notice regarding a tax credit claim. While this indicates a potential financial liability, the company believes the notice has no merit and expects no immediate financial or operational impact. Therefore, the sentiment is neutral.
Birla Corporation Limited has disclosed that its wholly-owned material subsidiary, RCCPL Private Limited (RCCPL), has received a Show Cause Notice (SCN) from the Additional Commissioner, Central Goods & Services Tax and Central Excise, Jabalpur. The notice pertains to the alleged availment of excess/ineligible Input Tax Credit (ITC) amounting to ₹15,02,51,383 for the financial year 2022-23.
The SCN alleges that certain Bills of Entry were not reflected in GSTR-2B during the period the credit was availed, and subsequently appeared after the statutory time limit prescribed under Section 16(4) of the CGST Act, 2017. This action is in contravention of Section 16(4) of the CGST Act, 2017, read with Section 20 of the IGST Act, 2017.
Birla Corporation Limited stated that the intimation was received on September 18, 2026, around 11:34 p.m. (IST). The company believes the SCN lacks merit and intends to make its submissions before the Adjudicating Authority within the given timelines. At this stage, the company anticipates no impact on the financial, operations, or other activities of RCCPL arising from this SCN.
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