SBI Cards Gets GST Notice For ₹819.3 Million Input Tax CreditS

SBI Cards and Payment Services Ltd. has received a show cause notice from the additional commissioner of Central GST, proposing to disallow input tax credit of ₹819.31 million for financial years 2019–20 to 2020–21, the company said in an exchange filing Tuesday.

Of the total, ₹4.8 million relates to ineligible ITC allegedly claimed and used, while ₹814.56 million pertains to a mismatch between GST returns during the same period.

The company has also been asked to explain why interest and penalty should not be imposed.

SBI Cards said it strongly believes the input tax credit was utilised correctly and in full compliance with GST law. “The company has a strong case on merits and believes it will prevail in these proceedings,” it said.

The notice was issued Monday. In the March quarter, the company’s net profit had fallen on year due to higher credit costs and weaker asset quality.