Max Estates Receives ₹2.59 Cr GST Show Cause Notice

Max Estates Ltd has received a show cause notice in form GST DRC-01 from the State Tax Department, Uttar Pradesh, proposing a demand of ₹2.59 Crores (₹1.35 Crores tax, ₹97.25 Lakhs interest, and ₹26.65 Lakhs penalty). The notice pertains to FY23 and relates to GST return and reconciliation matters, including differences in annual returns, input tax credit, and credit notes. This notice is a consequence of the merger with Max Ventures and Industries Limited, effective July 31, 2023, with an appointed date of April 1, 2022. The company is reviewing the notice and will file a reply. No final order has been passed, and there is no immediate impact on operations. The final financial impact will depend on the adjudication proceedings.