Bombay Dyeing Faces Rs 4.84 Crore GST Demand

Bombay Dyeing & Manufacturing Company Ltd has received a GST Demand-cum-Show Cause Notice (SCN) totalling Rs 4.84 crore for the Financial Year 2020-21.

Reader Takeaway: Company faces tax dispute; has paid part of the demand under protest.

What just happened

The Assistant Commissioner of State Tax, Investigation-C, Mumbai, issued the notice on August 21, 2026, under the CGST Act and MGST 2017. The notice alleges discrepancies related to GST on infrastructure charges from flat sales and interest on late reversal of input tax credit (ITC) for post-occupation certificate sales.

Why this matters

The total demand includes Rs 1.52 crore in GST tax liability, Rs 1.80 crore in interest, and Rs 1.52 crore in penalty. The company has already paid the Rs 1.52 crore GST tax liability under protest, leaving a disputed amount of Rs 3.32 crore comprising interest and penalty.

The backstory

This notice pertains to the financial year 2020-21, indicating a review of past transactions by tax authorities. Bombay Dyeing is known for its diversified business interests, including real estate development.

What changes now

Bombay Dyeing will file a reply to the adjudicating authority within the stipulated time. The company's response and the subsequent decision by tax authorities will determine the final financial impact.

Risks to watch

The primary risk is the potential financial outflow if the company loses the dispute over the Rs 3.32 crore interest and penalty. Further provisions might be needed.

Peer comparison

Tax notices and disputes are common in the real estate sector, affecting companies involved in property development and sales. The nature of the allegations – GST on infrastructure charges and ITC – are standard areas of tax scrutiny.

Context metrics (time-bound)

The notice is for the financial year 2020-21, with the notice issued on August 21, 2026. The company has paid Rs 1.52 crore under protest.

What to track next

Investors should monitor the company's response to the tax authorities and any updates on the resolution of the Rs 3.32 crore disputed amount.