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SBI Cards Gets ₹81.93 Crore GST Show Cause Notice Over Input Tax Credit Claims

Written by: Team Angel OneUpdated on: 2 Jul 2025, 5:19 pm IST
SBI Cards and Payment Services Ltd. has received a Show Cause Notice from GST authorities, alleging wrongful availment of Input Tax Credit (ITC) totalling over ₹81 crore.
SBI Cards Gets ₹81.93 Crore GST Show Cause Notice Over Input Tax Credit Claims
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On 30th June 2025, SBI Cards and Payment Services Ltd. was served a Show Cause Notice by the Additional Commissioner, CGST Gurugram. The notice pertains to alleged discrepancies in the company’s Input Tax Credit (ITC) claims under the Goods and Services Tax (GST) framework for the financial years 2018–19 to 2020–21. This regulatory action falls under Section 74(1) of the CGST Act, 2017, and its corresponding provisions under SGST, IGST, and UTGST Acts.

GST Authorities Flag ITC Mismatch and Irregular Vendors

According to the Show Cause Notice, the total proposed disallowance includes ₹81.45 crore arising from mismatches between GSTR-2A and GSTR-3B, and ₹47.53 lakh related to input tax claimed on supplies from vendors whose GST registrations were retrospectively cancelled or who failed to file GSTR-3B returns. These claims are considered ineligible by the GST department, and the notice seeks to recover the amount along with interest and penalties under applicable GST provisions.

The company has been asked to respond within 30 days, explaining why the ITC should not be recovered, why interest under Section 50 should not be charged from the due date till the actual date of deposit, and why penalties equivalent to the ITC amount should not be imposed under Section 74(1) for fraudulent availment.

SBI Cards Maintains Compliance and Plans Legal Response

SBI Cards and Payment Services Ltd. has stated that it availed the ITC in accordance with GST laws and is confident of prevailing in the proceedings. The company emphasised that the credit was claimed in good faith and strictly in line with statutory provisions. It further added that it believes the demand raised by the GST authority will be dropped in due course.

As of now, there is no acknowledged financial liability, compensation, or penalty disclosed by the company. The disclosure regarding the SCN has been submitted to both the BSE and NSE, and the full notice is also available on the company’s official website.

Read More: SBI Targets Solarising 40 Lakh Indian Homes by FY2027!

SBI Cards and Payment Services Share Price Performance 

As of July 02, 2025, at 9:30 AM, SBI Cards and Payment Services share price is trading at ₹915.90 per share, a decline of  1.71%.

Conclusion

This notice marks a significant regulatory development for SBI Cards, though the company remains firm in its position. As the matter proceeds through due process, it will be closely watched for implications on compliance interpretations under India’s evolving GST framework.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jul 2, 2025, 11:49 AM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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