SBI Cards shares slip on GST show cause notice for ₹81 crore ITC claim

SBI Cards shares fell over 2.5 per cent after it received a show cause notice from the Additional Commissioner of CGST

Shares of SBI Cards and Payment Services slipped over 2.5 per cent on Wednesday after it received a show cause notice from the Additional Commissioner of CGST, proposing to disallow Input Tax credit (ITC) of ₹81.9 crore.

 

The company's stock fell as much as 2.68 per cent during the day to ₹906.8 per share, the lowest level since June 4 this year. The stock pared losses to trade 1.8 per cent lower at ₹915.15 apiece, compared to a 0.2 per cent decline in Nifty 50 as of 11:30 AM. 

 

Shares of the company extended gains to their third day, falling over 8 per cent in the process. The counter has risen 37.5 per cent this year, compared to an 8 per cent advance in the benchmark Nifty 50. SBI Cards has a total market capitalisation of ₹87,121.8 crore, according to BSE.   Track LIVE Stock Market Updates Here

SBI Cards receives GST show cause notice 

The Non-Banking Financial Company (NBFC) received a show cause notice from the Additional Commissioner of CGST, Gurugram, on June 30, 2025, according to an exchange filing. 

 

The notice proposes to disallow input tax credit (ITC) totalling ₹81.93 crore for the financial years 2018-19 to 2020-21. This includes ₹81.45 crore claimed due to mismatches between GSTR-2A and GSTR-3B, and ₹47.5 lakh related to purchases from suppliers whose GST registrations were either cancelled or inactive.

 

The notice, issued under Section 74(1) of the CGST Act, also demands interest and proposes a penalty equivalent to the ITC claimed. The company has stated that it has availed ITC in full compliance with GST laws and is confident of successfully defending its case, expecting the demand to be eventually withdrawn. 

SBI Cards Q4 FY25 result update

The company reported a 19 per cent decline in profit after tax to ₹534 crore in Q4 FY25 compared to ₹663 crore in the corresponding quarter last fiscal. However, the company's total income increased 8 per cent to ₹4,832 crore from ₹4,475 crore in the year-ago period. 

 

SBI Cards' net interest income increased by 13 per cent to ₹2,415 crore in the reported quarter compared to ₹2,139 crore in the March 2024 quarter. On the asset quality front, its gross non-performing assets (NPA) stood at 3.08 per cent of gross advances as of March 31, 2025, compared to 2.76 per cent as of March 31, 2024.