SBI Cards Faces GST Show Cause Notice Over Rs 81.93 Crore Input Tax Credit Claims, ETCFO
Shares of SBI Cards and Payment Services will be in focus on Wednesday after the company disclosed that it has received a show cause notice from the Additional Commissioner (East 1), CGST Gurugram, regarding alleged wrongful input tax credit (ITC) claims amounting to Rs 81.93 crore.
The notice, dated June 30, 2025, pertains to the assessment period from FY 2018–19 to 2020–21 and was disclosed in a stock exchange filing on July 1.
According to the notice, Rs 81.45 crore of the proposed disallowance relates to mismatches between GSTR-2A and GSTR-3B filings. An additional Rs 47.53 lakh pertains to ITC claimed on supplies from vendors whose GST registrations were either cancelled retrospectively or who failed to file GSTR-3B returns.
The total demand has been raised under Section 74(1) of the Central Goods and Services Tax Act, 2017, along with corresponding provisions of the SGST and IGST Acts. SBI Cards has been directed to respond within 30 days, explaining why the ITC should not be recovered along with interest under Section 50 and a penalty equal to the amount claimed.
Of the disputed ITC, Rs 63.55 crore falls under IGST, Rs 8.89 crore under CGST, and Rs 8.99 crore under SGST.
SBI Cards stated that it has availed ITC in accordance with applicable GST laws and is confident that the demand will not hold. The company stated that it has a strong case on merit and expects a favorable outcome.
According to Trendlyne, the average target price for SBI Cards is Rs 903, indicating a 3% downside from current levels. The stock carries a ‘Hold’ rating based on consensus from 25 analysts.
In the previous session, SBI Cards shares closed 2% lower at Rs 932.3. The stock has surged 38% year-to-date and 29% over the past year. The company’s market capitalisation stands at Rs 88,715 crore.
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