Shemaroo to appeal order on Rs 70.26-crore GST ITC demand

New Delhi: Shemaroo Entertainment has received an order from the Commissioner (Appeals-II), CGST & Central Excise, Mumbai, in a case involving alleged inadmissible input tax credit (ITC) of Rs 70.26 crore and has said it will file a further appeal against the ruling.

In a stock exchange filing, the company said the appellate order is dated November 28, 2025 and was received on December 8, 2025. The matter relates to an earlier order dated February 5, 2025, which followed a show-cause notice issued on August 2, 2024.

According to the disclosure, the authorities have sought recovery of alleged inadmissible ITC of Rs 70.26 crore along with interest at the applicable rate and a penalty equal to the tax amount under Section 74(1) of the CGST Act, 2017 read with Section 20 of the IGST Act, 2017.

An additional penalty of Rs 63.35 crore has also been proposed under Section 122(1)(ii) and (x) and Section 122(2)(b) of the CGST Act, 2017 read with Section 20 of the IGST Act.

The order further proposes penalties of Rs 133.61 crore each on the company’s Joint Managing Director, Chief Executive Officer and Chief Financial Officer under Section 122(1A) of the CGST Act, 2017 and MGST Act, 2017.

Shemaroo has stated that it “does not accept the levy” under the order and is reviewing all legal options, including filing appropriate proceedings within the prescribed timelines. Based on its assessment, the company has said the demand “is not maintainable in law” and that it will prefer a further appeal, while continuing to evaluate the impact on its financials.