Accounting And Audit 22 September 2026
Birla Corp Subsidiary Hit with Rs 15.02 Cr SCN Over Excess ITC
Birla Corporation Limited's wholly‑owned subsidiary has been served a show cause notice (SCN) demanding Rs 15.02 crore for claiming ineligible excess input tax credit (ITC) under the CGST Act. The notice cites violations of Section 16(4) and highlights that the subsidiary exceeded the tax audit limit, prompting regulators to seek clarification and potential recovery. The case underscores tighter enforcement of GST compliance in India and may affect other firms with similar ITC practices.
- SCN issued: Birla Corp's subsidiary received a show cause notice for Rs 15.02 crore over claimed ITC.
- Legal breach: The notice points to violations of Section 16(4) of the CGST Act and exceeding the tax audit threshold.
- Regulatory action: Authorities are demanding explanations and may recover the amount if the claim is deemed invalid.
For full details, see the original report here.
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