DIC India receives GST show cause notice over alleged non-payment

DIC India Limited announced on September 29, 2025, that it has received a show cause notice under Section 73(1) of the Karnataka Goods and Service Tax Act, 2017, and concurrent provisions of the Central Goods and Service Tax Act, 2017. The notice alleges non-payment of GST on outward supply and excess claims of wrong and ineligible Input Tax Credit (ITC).

The notice specifies a GST amount of ₹3,83,47,078 along with interest of ₹2,87,60,309, applicable to the financial year 2021-22. DIC India stated that the notice contains clerical deficiencies, particularly in the calculation of demand, where the "taxable value" of ₹3.65 crore appears to have been incorrectly considered as "tax."

Despite the notice, DIC India anticipates no material impact on its financial, operational, or other activities. The company plans to reply to the show cause notice within the stipulated timeframe, providing relevant supporting documents, and will appear for a personal hearing before the departmental authorities as applicable.