Diligent Media Receives GST Show Cause Notice for ₹1.12 Crore Demand
Diligent Media Corporation Limited received a GST Show Cause Notice demanding ₹1,08,00,000 for Input Tax Credit reversal and an additional ₹4,90,164 for short payment of outward tax liability for FY 2020-21. The company is seeking legal advice to challenge the demand.
The notice involves a demand of over ₹1.12 crore, which could impact the company's financials if the demand is upheld. However, the company is exploring legal recourse, and the final impact is yet to be determined.
The company has received a Show Cause Cum Demand Notice from GST authorities for a significant amount, indicating a potential financial liability and legal challenge.
Diligent Media Corporation Limited has disclosed the receipt of a Show Cause Cum Demand Notice (SCN) from the Assistant Commissioner, Anti-Evasion, CGST & CX, Mumbai Central Commissionerate. The SCN, issued under Section 74 of the CGST Act, 2017, pertains to Input Tax Credit (ITC) of ₹1,08,00,000 availed by the company for FY 2021-22. This ITC was related to a business transaction with a vendor whose GST registration was subsequently cancelled ab initio.
Additionally, the authority has raised a demand for ₹4,90,164 towards the short payment of outward tax liability for FY 2020-21, along with applicable interest and penalty. The company received this communication on August 31, 2026.
Diligent Media Corporation Limited is currently seeking appropriate legal advice and intends to pursue all available legal remedies, including challenging the proposed demand before the appropriate appellate authority. The company states that, apart from the amounts mentioned, there is no other impact on its financial or operational activities.
A plain-language summary of a public exchange filing by Diligent Media Corporation Limited. Read the original for the full detail.