Digisol Systems Receives Rs 1.76 Crore GST Show Cause Notice Over Excess ITC Availment, Return Discrepancies:

Digisol Systems Limited, a material subsidiary of Smartlink Holdings Limited, has received a show cause notice (SCN) dated September 28, 2026, from the State Tax Officer, Maharashtra Goods and Services Tax Department, under Section 73 of the CGST/SGST/IGST Act, 2017.

The company received the notice on October 05, 2026, and was intimated to the company on the same date by the State Tax Officer, Maharashtra Goods and Services Department. The company has disclosed that it is presently analysing and evaluating the notice and planning to furnish a detailed reply to the notice.

According to the disclosure, the company has received this notice in relation to a scrutiny of GST returns furnished by Digisol for the financial year 2022-2023. The concerned tax authorities discovered a report of excess outward tax in GSTR-1 in comparison to that in GSTR-9.

Further, the company is alleged to have availed excess Input Tax Credit (ITC) in GSTR-3B/GSTR-9, which is not confirmed in GSTR-2B/GSTR-2A. The company has been issued demands amounting to Rs 1,66,717.29 and Rs 1,74,74,992.52, respectively, for the aforementioned discrepancies.

The authority has identified the tax liability, including interest and penalty: GST demand of Rs 1.76 crore (IGST Rs 1.75 crore, CGST Rs 84,316, SGST Rs 84,316), interest proposed in the SCN of Rs 1.41 crore, and penalty proposed in the notice of Rs 17.70 lakh.

The disclosure reads, "Digisol has been called upon to show cause as to why the above liability should not be levied and to pay the applicable interest and Penalty under Section 73/74 of MGST/CGST Act 2017 in form DRC-03 if the liability has been accepted by Digisol."

The aforementioned complete disclosure has been made by Smartlink Holdings Limited vide an Intimation dated October 06, 2026, under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 [LODR Regulations].