Multi Commodity Exchange of India Ltd (MCX) has received a Goods and Services Tax (GST) show-cause notice proposing a combined ₹103.31 crore in tax, interest and penalty for financial year 2022-23. According to reports from CNBC TV18, the notice, dated September 29, was issued by the GST Department under Section 73(1) of the Central Goods and Services Tax (CGST)/Maharashtra Goods and Services Tax (MGST) Act, 2017, in Form GST DRC-01. The proposed amount includes a tax demand of ₹54.08 crore, interest of ₹43.82 crore and penalty of ₹5.41 crore. The department has alleged that tax was not paid or was short paid and/or input tax credit was wrongly availed or utilised during FY23.
MCX said it is preparing its response to the notice and believes it has a strong case on factual grounds. As reported by CNBC TV18, the company stated that the matter has no material impact on its financial position, operations or other activities. The exchange has maintained its position that it has acted appropriately regarding the GST matters under investigation.
In September this year, Multi Commodity Exchange of India Ltd Managing Director and CEO Praveena Rai emphasized the exchange's strategic shift toward technology partnerships. According to CNBC TV18, Rai stated that the commodity exchange already has the basics covered — the products, the participants, the trading platform — but the real shift going forward will come from technology partnerships rather than the exchange going it alone. She highlighted that 'The next level of experiential change will come really from the magic of fintech' and noted that an exchange has to give every participant fair, equal, transparent access as the regulatory baseline.
Shares of Multi Commodity Exchange of India Ltd ended at ₹3,300.00, up by ₹58.00, or 1.79%, on the BSE. As reported by CNBC TV18, the positive market response occurred despite the GST notice, indicating investor confidence in the company's ability to address the tax matter effectively.
