Diligent Media Faces GST Demand Notice for ₹1.08 Cr ITC

Diligent Media Corporation Ltd has received a Show Cause Cum Demand Notice (SCN) from the Assistant Commissioner, Anti-Evasion, CGST & CX, Mumbai Central Commissionerate. The notice pertains to the Input Tax Credit (ITC) of ₹1,08,00,000/- availed by the company for FY 2021-22, related to a vendor whose GST registration was cancelled ab initio. Additionally, a demand of ₹4,90,164/- has been raised for short-payment of outward tax liability for FY 2020-21, along with applicable interest and penalty. The company is seeking legal advice to challenge the proposed demand. The impact is quantified by the amounts mentioned, with no other financial or operational impact anticipated.