Diligent Media Corporation Faces Rs 1.12 Crore GST Demand Over ITC Claimed From Ab Initio Cancelled Vendor:

Diligent Media Corporation Limited has received a show cause notice (SCN) passed by the Assistant Commissioner, Anti-Evasion, CGST & CX, Mumbai Central Commissionerate.

The said notice belongs to an Input Tax Credit (ITC) claim of Rs 1.08 crore, claimed by the company for the Financial Year (FY) 2021-22, in relation to a business transaction with one of the vendors, whose GST registration was cancelled ab initio (from the beginning).

In order to recover the aforesaid ITC availed by the company, the notice has proposed a demand of Rs 1.08 crore. Further, an additional tax demand of Rs 4.90 lakh has been raised towards the short payment of outward tax liability for FY 2020-21, along with applicable interest and penalties.

The notice has been passed under Section 74 of the CGST Act, 2017, read with the corresponding provisions of the IGST/MGST Acts, and the company received the same on August 31, 2026.

The company is presently analysing the notice and looking for appropriate legal remedies such as responding to the notice or challenging the notice before the relevant appellate authority/forum (as will be advised).

The company has further stated that the impact of the notice on its financial, operational and business activities is limited to the proposed demand.

The aforementioned disclosure has been made vide an Intimation dated September 1, 2026, addressed to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE), issued in pursuance of Regulation 30 read with Schedule III of the Listing (Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations).