Max Estates Faces GST Notice Over Input Tax Credit Irregularities
Max Estates Ltd, a prominent real estate developer operating in the Delhi-NCR region, has recently been issued a show cause notice by the Goods and Services Tax (GST) department. The notice pertains to the company’s claimed input tax credit (ITC) amounting to approximately Rs 2.25 crore, deemed inadmissible by the tax authorities.
Details of the Notice
As reported in a regulatory filing on April 6, 2025, Max Estates received the notice from the Office of the Principal Commissioner, Central Goods and Services Tax, Audit Commissionerate, in Noida. The GST department’s concerns center around the eligibility of ITC claimed for legal expenses related to acquisitions and investments during disputes under the National Company Law Tribunal (NCLT).
Breakdown of Claims
The GST department has raised specific objections to ITC claimed by Max Estates for the financial years spanning from 2018-19 to 2022-23, including amounts specified as follows:
- Integrated Goods and Services Tax (IGST): Rs 1,07,55,473
- Central Goods and Services Tax (CGST): Rs 58,90,659
- State Goods and Services Tax (SGST): Rs 58,90,659
The total amount cited in the notice is Rs 2,25,36,791, along with potential interest and penalties.
Company’s Response and Preparedness
In light of the notice, Max Estates has indicated that there will be no significant impact on its financial standing, operational activities, or other areas as a result of this matter. The company has expressed confidence in its legal and factual grounds concerning its claimed credits and is prepared to contest the notice in any subsequent legal proceedings initiated by the authorities.
About Max Estates
Max Estates is recognized as one of the leading players in the Delhi-NCR real estate market, involved in numerous residential and commercial developments across the region. The company’s ongoing projects and other business ventures continue to position it as a pivotal contributor to the local economy.
For further updates and to stay informed about this evolving situation, stakeholders are encouraged to follow Max Estates’ communications and regulatory filings.
