GST Jigsaw: SBI Cards Faces Big Puzzle, Promises a Picture-Perfect Defense

SBI Cards and Payment Services Ltd. has received a significant show-cause notice from GST authorities, demanding ₹81.93 crore in allegedly ineligible input tax credit (ITC) claims. The notice, issued by the Additional Commissioner (East 1) of CGST Gurugram on June 30, 2025, covers financial years 2018-19 to 2020-21.

 

Key Highlights:

Disputed ITC Breakdown:

Legal Basis: Notice issued under Section 74(1) of the CGST Act, 2017, with parallel SGST/IGST provisions.

 

Company's Defense: SBI Cards asserts ITC was availed "strictly in terms of GST law" and expects the demand to be dropped, citing a "strong case on merits" .

 

Market Impact: Shares fell 1.95% to ₹932.35 on the BSE following the disclosure .

 

Authorities' Demands:

SBI Cards has 30 days from notice receipt to respond. The company maintains confidence in a favorable outcome, emphasizing compliance with GST regulations. The case highlights intensified GST scrutiny on financial services, with outcomes likely to influence sectoral compliance approaches.

 

Source: CNBC-TV18, SBI Cards Exchange Filing