G R Infraprojects has received a show cause notice from the Madhya Pradesh State Tax authorities demanding Rs 321.60 crore for the 2020-2021 financial year. The demand relates to alleged input tax credit discrepancies and GSTR-3B mismatches. The company plans to contest the notice, stating it sees no material financial liability.
G R Infraprojects Faces Rs 321.6 Crore GST Tax Demand
The proposed demand is Rs 321.60 crore for the period April 2020 to March 2021.
Reader Takeaway: The company plans to contest the GST notice, anticipating no material financial liability despite the headline demand figure.
What just happened
G R Infraprojects has been issued a show cause notice by the Office of the Joint Commissioner of State Tax, Ratlam Division, Madhya Pradesh. The notice, dated August 25, 2026, alleges discrepancies including ineligible input tax credit and mismatches between e-way bill data and GSTR-3B filings for the fiscal year 2020-2021. The total demand of Rs 321.60 crore includes tax, interest, and penalties.
Why this matters
For investors, the size of the demand relative to the company's operating profile is a point of note. While show cause notices are common in tax administration, a demand exceeding Rs 300 crore requires close management oversight. The company's ability to provide evidence that satisfies tax authorities will be the key factor in determining if this remains a non-event or evolves into a financial burden.
What changes now
The matter is currently at the show cause stage. G R Infraprojects is preparing a formal response to the authorities. The company maintains that it has strong legal and factual grounds to defend its filings and does not expect any material financial impact at this juncture.
What to track next
Investors should monitor future exchange filings for the outcome of the response submission. Any subsequent orders or adjustments to the demand from the GST authorities will define the next phase of this legal process.