Fake ITC Alert: Interarch Building Under GST Lens for Claiming ITC from Cancelled Taxpayers

Interarch Building Solutions Limited, one of the leading steel construction solution providers, has received three show cause notices on June 30th, 2025, amounting to over Rs 1 crore. The company has disclosed the same with the stock exchanges: National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

All three show cause notices have been issued under Section 74 of the HGST/CGST & Penal Provisions of the HGST /CGST Act 2017 r.w. Section 20 of the IGST Act 2017. The SCN are issued as the company has claimed GST input tax credit (ITC) using invoices from a supplier who was either suspicious or whose GST registration had been cancelled. This supplier is M/s Z.A. Infratech, and the GST number identified by the department is 061AFPS3067A1ZR.

• The first notice received on June 30, 2025, is for Rs 26,29,836. It includes Tax of Rs 9,06,840, Interest of Rs 8,16,156, and Penalty of Rs 9,06,840.
• The second notice received by the company on the same date is for Rs 85,73,434. This amount includes tax of Rs 31,51,998, Interest of Rs 22,69,438, and a penalty of Rs 31,51,998.
• The other notice was also received on the same date and demands Rs 14,20,372. This includes Tax of Rs 4,61,160, Interest of Rs 4,98,052, and a penalty of Rs 14,20,372.