Leading pure-play credit card
issuer SBI Cards and Payment Services Ltd on Tuesday (July 1) said it has
received a show cause notice from the Additional Commissioner (East 1), CGST
Gurugram, proposing to disallow input tax credit (ITC) amounting to ₹81.93
crore.
The notice, issued on June 30,
2025, covers the assessment period from FY 2018-19 to 2020-21 and was shared
with exchanges on July 1.
As per the show cause notice, the
proposed disallowance includes ₹81.45 crore due to mismatches between GSTR-2A
and GSTR-3B filings and ₹47.53 lakh related to supplies from vendors whose GST
registrations were cancelled retrospectively or who failed to file GSTR-3B.
The total demand is being
considered under Section 74(1) of the Central Goods and Services Tax Act, 2017,
read with corresponding provisions of the SGST and IGST Acts.
The company has been asked to
show cause within 30 days of the notice as to why the ineligible ITC should not
be recovered along with interest under Section 50 of the CGST Act and a penalty
equivalent to the ITC claimed.
The total ITC under dispute
comprises ₹63.55 crore under IGST, ₹8.89 crore under CGST, and ₹8.99 crore
under SGST. SBI Cards maintains that it has availed credit in compliance with
GST law and is confident that the demand will be dropped. The company believes
it has a strong case on merits and expects a favourable outcome.
Shares of SBI Cards and Payment Services Ltd ended at ₹932.35, down by ₹18.55, or 1.95%, on the BSE.
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