H.G. Infra Engineering Limited has received a Show Cause Notice from tax authorities regarding GST audit proceedings for FY 2022-23. The notice alleges a potential aggregate liability of ₹94,00,00,328, stemming from observations on input tax credit and turnover reconciliation. The company believes the observations are not sustainable and does not foresee a material financial impact at this stage, planning to file a response with supporting documentation.
Tax Authority Issues Show Cause Notice
H.G. Infra Engineering Limited announced on September 16, 2026, that it has received a Show Cause Notice (SCN) under Section 73(1) of the Central Goods and Services Tax Act, 2017, and the Karnataka Goods and Services Tax Act, 2017. This notice arises from GST audit proceedings for the Financial Year 2022-23.
Significant Potential Liability
The aggregate liability indicated in the notice amounts to ₹94,00,00,328. The SCN contains observations related to input tax credit and the reconciliation of reported turnover with the company’s financial statements.
Company’s Stance and Potential Impact
Based on its preliminary assessment, H.G. Infra Engineering Limited believes that the observations and the proposed amounts are not sustainable on facts or in law. Consequently, the company does not foresee any material financial impact at this stage. Any financial impact, if it materializes, will be dependent on the outcome of the adjudication proceedings. The company intends to file a detailed response to the SCN, supported by factual positions and proper documentation, and anticipates a favorable outcome.
Source: BSE
