Real estate company Max Estates Ltd. has received a show cause notice from the GST department for recovery of around Rs 2.25 crore, related to inadmissible input tax credit claimed by the company. In a regulatory filing on Friday, Max Estates informed that the company has received show cause notice from Office of the Principal Commissioner, Central Goods and Services Tax, Audit Commissionerate, Noida.
"The show cause notice concerns the inadmissible ITC claimed by the company related to legal expenses incurred for the acquisition of businesses and investment in companies under the NCLT dispute," the filing said.
The GST department has raised objections regarding the eligibility of ITC availed by the company for financial years 2018-19 to 2022-23, amounting to Rs 2.25 crore.
"The GST department has proposed to recover the amount of Rs 2,25,36,791 (IGST: Rs 1,07,55,473 + CGST: Rs 58,90,659 + SGST: Rs 58,90,659) along with applicable interest and penalty," it added.
Max Estates said there is no material impact on financial, operation or other activities of the company.
"Further, the company firmly believes that it maintains strong legal and factual grounds and is fully prepared to address and contest the aforesaid show cause notice for any future proceedings, should they be initiated by the authorities against the company," it added.
Max Estates is one of the leading real estate developers in Delhi-NCR market. It is developing many housing and commercial projects in this region.
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