OnEMI Subsidiary Receives Rs 44 Crore GST Demand Notice

Total Demand: Rs 44.06 Crore (comprising tax, interest, and penalty)
Notice Date: September 29, 2026

Reader Takeaway: The company is contesting the tax demand and expects no material financial or operational impact.

What just happened

OnEMI Technology Solutions Ltd has reported that its wholly-owned subsidiary, Si Creva Capital Services Private Limited, received a show cause notice (SCN) from the Maharashtra State Tax department. The demand, totaling Rs 44.06 crore, relates to the financial year 2022-23 and was issued under Section 73(1) of the Maharashtra GST Act.

Why this matters

The tax authorities have identified five specific areas of concern, primarily focusing on Input Tax Credit (ITC) management and filing discrepancies. The total claim is broken down into Rs 22.03 crore in tax, Rs 19.83 crore in interest, and a penalty of Rs 2.20 crore. The department cites issues such as non-reversal of ITC for exempt supplies and mismatches between GSTR-1, GSTR-3B, and GSTR-9 returns.

Management response

OnEMI management has publicly maintained that the notice lacks merit. The company has formally initiated steps to defend its position before the relevant adjudicating authorities. Leadership stated that this legal matter is not expected to have a material adverse impact on the subsidiary's operations or the group's consolidated financial health.

Risks to watch

While the company is confident in its legal stance, the size of the demand relative to operational cash flows remains a point of interest. Investors should track the adjudication proceedings, as potential unfavorable outcomes could create future financial liabilities or require provisioning, even if the management currently views the claim as meritless.

What to track next

The primary focus for investors will be the response submitted by Si Creva Capital Services to the Maharashtra GST department and subsequent hearings. Any updates regarding settlement discussions or legal orders from the tax authority will be critical markers for the company's regulatory profile.