5paisa Capital receives tax notice for ITC discrepancies

5paisa Capital Limited disclosed today that it received a Show Cause Notice (SCN) on October 06, 2025, from the Office of the Superintendent of Central Tax. The SCN, issued under Sections 74 of the CGST Act, 2017, Karnataka GST Act, 2017, and Section 20 of the IGST Act, 2017, seeks an explanation regarding total Input Tax Credit (ITC) amounting to INR 322,495. The authority demands recovery of this amount along with applicable interest and penalties.

The alleged violations include non-reversal of ITC, discrepancies between the ITC Register and GSTR-2A, and ITC claimed on other expenses. 5paisa Capital confirmed it would respond to the authority within stipulated timelines and expressed confidence in substantiating its position with complete records and supporting documentation.

The company believes it will receive relief from the authority and states there is no immediate impact on its financial, operations, or other activities due to the SCN. 5paisa Capital affirmed its commitment to corporate governance and timely disclosures.