Brigade Enterprises receives GST SCN for tax discrepancies

Brigade Enterprises Ltd has received a show cause notice (SCN) under section 73(1) of the Central/Karnataka Goods and Services Tax Act, 2017. The SCN alleges arbitrary tax proposals on revenue differences between financial statements and GST returns, including notional incomes. It also cites alleged excess availment of Input Tax Credit (ITC) and alleged short reversal of ITC attributable to exempted turnovers. The company asserts that the SCN has no merits and will make necessary submissions to the GST authorities within the stipulated timelines. Brigade Enterprises expects no financial, operational, or other impact from this SCN, and notes that the notice was served in violation of natural justice principles.