Speciality Restaurants Limited Faces Tax Demand Over RCM and Input Tax Credit Irregularities
Speciality Restaurants Limited has received a Show Cause-cum-Demand Notice concerning tax obligations, related to the short payment of tax under Reverse Charge Mechanism (RCM) and irregular availment of Input Tax Credit (ITC). The notice was issued by the Office of the Commissioner of Central Tax, Kolkata Audit-I CGST & CX Commissionerate, and received by the company on August 11, 2026.The demand pertains to the assessment period spanning from the financial year 2021-22 to 2023-24.
Details of Tax Demand
The total tax amount demanded under the notice aggregates to ₹ 1,80,43,529/- (Rupees one crore eighty lakh forty three thousand five hundred twenty nine only). In addition to the principal tax demand, the notice also includes applicable interest under Section 50 of the CGST Act and a penalty equivalent to the tax amount under Section 74 of the CGST Act.The specifics of the financial exposure are detailed below:
| Particular | Detail |
|---|---|
| Assessment Authority | Office of the Commissioner of Central Tax, Kolkata Audit-I CGST & CX Commissionerate |
| Assessment Period | FY 2021-22 to 2023-24 |
| Total Tax Demanded | ₹ 1,80,43,529/- |
| Penalties and Interest | Applicable interest under Section 50 of the CGST Act and a penalty equivalent to the tax amount under Section 74 of the CGST Act. |
Company's Response and Operations Status
Regarding this matter, Speciality Restaurants Limited stated that it is currently in discussions with its tax advisors and evaluating the situation thoroughly. The company indicated an intent to pursue legal remedies as deemed available and advised.In terms of business continuity, the company confirmed that there is no immediate impact on its financials, operations, or other activities.
SPECIALITY Stock Price Movement
Speciality Restaurants Limited shares closed today after rallying strongly, climbing 5.36% to settle at ₹158.60. The stock achieved a massive day high, touching its 52-week peak amidst significant trading volume of 653,579 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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