Max Estates Ltd, a leading real estate company in the Delhi-NCR market, has received a show-cause notice from the Goods and Services Tax (GST) department for recovering Rs 2.25 crore. The notice pertains to the company’s claim of inadmissible input tax credit (ITC) for legal expenses incurred between 2018-19 and 2022-23. The GST department has raised objections to the ITC availed by the company, amounting to Rs 2.25 crore, and has proposed to recover the amount along with interest and penalty. The notice was received by the Office of the Principal Commissioner, Central Goods and Services Tax, Audit Commissionerate, Noida.
The company has stated that the notice has no material impact on its financial, operational, or other activities. Max Estates believes that it has strong legal and factual grounds and is prepared to contest the show-cause notice in case of any future proceedings. Max Estates is a prominent developer in the Delhi-NCR market, engaged in the development of several housing and commercial projects.
The show-cause notice is related to the acquisition of businesses and investments in companies under the National Company Law Tribunal (NCLT) dispute, and the GST department has proposed to recover the amount as follows: Rs 1.07 crore (IGST), Rs 58.9 crore (CGST), and Rs 58.9 crore (SGST). Max Estates will likely contest the notice and defend its claim for input tax credit. The company’s position is strengthened by its confidence in its legal and factual grounds, suggesting that it is well equipped to handle any forthcoming proceedings.