Prestige Estates Subsidiary Faces ₹154 Crore GST Show Cause Notice from DGGI
Prestige Estates Projects Ltd's subsidiary, Prestige Mulund Realty Private Limited, has received a significant GST show cause notice from the Directorate General of Goods & Services Tax Intelligence (DGGI) in Mumbai. The notice, dated October 6, 2025, demands an explanation for the non-payment or short-payment of GST amounting to ₹153.60 crore, along with penalties and interest.
GstDggiPrestige EstatesReal EstateShow Cause NoticeReal EstateOct 06, 2025
The SCN, dated October 6, 2025, alleges non-payment or short-payment of Goods and Services Tax (GST) by the subsidiary. According to the notice, Prestige Mulund Realty Private Limited is required to present its case before the Additional/Joint Commissioner, CGST & Central Excise, Mumbai East Commissionerate, within 30 days. The company is asked to explain why GST amounting to ₹153.60 crore, along with an equivalent penalty and applicable interest, should not be demanded under Section 74(1) of the CGST Act, 2017 and other relevant provisions.
In its disclosure to the exchanges, Prestige Estates stated that based on its internal assessment, the demand is not maintainable. The company is currently evaluating the matter and will take appropriate action in response to the notice. Prestige Estates further clarified that it does not anticipate any material impact on its financials, operations, or other business activities due to the notice.
Prestige Estates is a leading real estate developer in India, known for its high-quality residential and commercial projects. The company's commitment to transparency and compliance with regulatory requirements is a cornerstone of its business strategy. This latest notice from the DGGI is being handled with the same level of seriousness and diligence.
Shares of Prestige Estates Projects Ltd ended at ₹1,547.00, up by ₹14.40, or 0.94%, on the BSE. Despite the notice, investors seem to have confidence in the company's ability to resolve the issue satisfactorily.
Prestige Estates' management has a strong track record of addressing regulatory concerns and maintaining the trust of its stakeholders. The company's proactive approach to this notice is likely to reassure both investors and customers, ensuring that business operations continue smoothly without any significant disruptions.
In conclusion, while the GST show cause notice is a significant matter, Prestige Estates is well-prepared to handle it. The company's robust internal processes and commitment to compliance will play a crucial role in addressing the allegations and ensuring that all necessary actions are taken to protect the interests of its stakeholders.
Frequently Asked Questions
What is the amount of GST being demanded in the show cause notice?
The show cause notice demands ₹153.60 crore in GST, along with an equivalent penalty and applicable interest.
Who issued the show cause notice to Prestige Mulund Realty Private Limited?
The show cause notice was issued by the Directorate General of Goods & Services Tax Intelligence (DGGI) in Mumbai.
What is the deadline for Prestige Mulund Realty Private Limited to respond to the show cause notice?
Prestige Mulund Realty Private Limited has 30 days from the date of the notice to present its case before the Additional/Joint Commissioner, CGST & Central Excise, Mumbai East Commissionerate.
How does Prestige Estates plan to handle the show cause notice?
Prestige Estates is evaluating the matter and will take appropriate action in response to the notice. The company does not expect any material impact on its financials, operations, or other business activities.
What is the current share price of Prestige Estates Projects Ltd?
The shares of Prestige Estates Projects Ltd ended at ₹1,547.00, up by ₹14.40, or 0.94%, on the BSE.
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