H.G. Infra Engineering Receives GST Show Cause Notice for ₹94 Crore
H.G. Infra Engineering received a GST Show Cause Notice for ₹94 crore concerning FY23 audit proceedings. The company believes the notice is unsustainable and does not foresee a material financial impact, expecting a favorable outcome after filing a response.
The show cause notice involves a substantial amount of ₹94 crore. While the company believes there will be no material financial impact, the outcome of the adjudication proceedings could potentially affect the company's financials and operations.
The company has received a show cause notice with a significant monetary implication, which introduces uncertainty. However, the company's preliminary assessment suggests the claims are unsustainable and anticipates a favorable outcome, mitigating immediate negative sentiment.
H.G. Infra Engineering Limited (HGINFRA) has received a Show Cause Notice (SCN) from the Deputy Commissioner of Commercial Taxes, Karnataka, Bengaluru, under Section 73(1) of the Central Goods and Services Tax Act, 2017, and the Karnataka Goods and Services Tax Act, 2017. The notice, received on September 16, 2026, pertains to GST audit proceedings for the Financial Year 2022-23.
The aggregate liability under the notice is ₹94,00,00,328 (Ninety-Four Crore, Three Hundred and Twenty-Eight Rupees).
The notice contains various observations relating to input tax credit and reconciliation of turnover reported in the GST returns with the financial statements. The company, however, based on its preliminary assessment, believes that the observations and the amounts proposed in the Notice are not sustainable on facts or in law. Accordingly, HGINFRA does not foresee any material financial impact at this stage, stating that any financial impact, if any, would depend upon the outcome of the adjudication proceedings. The company intends to file a response to the SCN with factual position and proper documentation, expecting a favorable outcome.
Any material development on this matter will be informed to the Stock Exchanges.
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H.G. Infra Engineering Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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