Leading pure-play credit card issuer SBI Cards and Payment Services Ltd on Tuesday (July 1) said it has received a show cause notice from the Additional Commissioner (East 1), CGST Gurugram, proposing to disallow input tax credit (ITC) amounting to ₹81.93 crore.
The notice, issued on June 30, 2025, covers the assessment period from FY 2018-19 to 2020-21 and was shared with exchanges on July 1.
As per the show cause notice, the proposed disallowance includes ₹81.45 crore due to mismatches between GSTR-2A and GSTR-3B filings and ₹47.53 lakh related to supplies from vendors whose GST registrations were cancelled retrospectively or who failed to file GSTR-3B.
Also Read: All credit card changes to take place in July: Full list here
The total demand is being considered under Section 74(1) of the Central Goods and Services Tax Act, 2017, read with corresponding provisions of the SGST and IGST Acts.
The company has been asked to show cause within 30 days of the notice as to why the ineligible ITC should not be recovered along with interest under Section 50 of the CGST Act and a penalty equivalent to the ITC claimed.
The total ITC under dispute comprises ₹63.55 crore under IGST, ₹8.89 crore under CGST, and ₹8.99 crore under SGST. SBI Cards maintains that it has availed credit in compliance with GST law and is confident that the demand will be dropped. The company believes it has a strong case on merits and expects a favourable outcome.
Also Read: Credit Card spending rises 15% YoY in May, driven by travel and e-commerce
Shares of SBI Cards and Payment Services Ltd ended at ₹932.35, down by ₹18.55, or 1.95%, on the BSE.
