Max Estates Limited has received a GST show-cause notice proposing a demand of INR 2.59 crore in relation to financial year 2022-23, primarily over GST return and reconciliation matters. The proposed demand comprises INR 1.35 crore in tax, INR 97.25 lakh in interest and INR 26.65 lakh in penalty, aggregating to approximately INR 2.59 crore.
“The tax authorities have proposed demand aggregating to ₹2.59 Crores, comprising tax of ₹1.35 Crores, interest of ₹97.25 Lakhs and penalty of ₹26.65 Lakhs,” Max Estates noted in an exchange filing.
The notice has been issued under section 73 of the Central Goods and Services Tax Act, 2017 and the Uttar Pradesh Goods and Services Tax Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017, in relation to Max Ventures and Industries Limited, which was merged with Max Estates effective July 31, 2023, with an appointed date of April 1, 2022.
The GST authorities have raised issues primarily relating to GST return and reconciliation matters for FY23, including differences in the annual return and reconciliation statement, input tax credit-related reconciliations, credit-note details and other GST reconciliation matters.
Max Estates said the matter is currently at the show-cause notice stage and that no final demand or order has been passed. The company is reviewing the notice and will take necessary action, including filing its reply under applicable laws.
The company also said that the final financial impact, if any, would depend on the outcome of the adjudication proceedings and that there is currently no impact on its operations or other activities.
“The matter is currently at the show cause notice stage and no final demand or order has been passed. The Company is in the process of reviewing the matter and will take necessary actions, including filing of reply, in accordance with applicable laws. The final financial impact, if any, will depend on the outcome of the adjudication proceedings,” noted Max Estates.
