Music Broadcast received a Show Cause Notice from the Uttar Pradesh State GST Authority demanding approximately ₹11.58 crore regarding alleged tax shortfalls for FY 2022-23.

The notice, dated September 21, 2026, was issued by the Office of the Deputy Commissioner, State Tax, Lucknow. It alleges a mismatch in tax liability reflected in GSTR-7/GSTR-8 versus GSTR-3B returns and claims ineligible Input Tax Credit (ITC) on inward supplies from certain vendors.

Breakdown of Demand

The authority has outlined specific components contributing to the total demand under Section 73(1) of the UP GST Act, 2017.

The alleged short payment of output tax of approximately ₹5,723.81 lakh concerns a discrepancy sought to be taxed at 18%. Additionally, the department identified ineligible ITC claims of ₹6,72,923 (IGST) and ₹7,76,682 each (CGST/SGST), arguing these were not in the course of business. A minor shortfall of ₹639 each in CGST/SGST under reverse charge mechanism was also flagged.

Company Response

Music Broadcast stated it does not agree with the allegations. The company intends to submit a detailed reply supported by relevant records and reconciliations within the prescribed timeline. Management noted that as this is a Show Cause Notice and not a final order, it does not anticipate any material financial impact at this stage.

What the Numbers Show

The penalty component constitutes exactly 10% of the disputed tax amount of ₹10.53 crore. This precise proportionality suggests a standard application of statutory penalties rather than an escalated punitive measure for the alleged irregularities in ITC availment and tax liability reporting.

Music Broadcast Limited shareholders approved the company’s audited financial statements for FY26 and confirmed interim dividend payments to preference shareholders at its 27th Annual General Meeting on September 2, 2026.

The meeting, conducted via video conference, saw all four ordinary resolutions passed with overwhelming support. Promoter group members voted in favor of 100% of their holdings across all agenda items.

Voting Results

The voting process included remote e-voting from August 30 to September 1, 2026, followed by Insta-Poll voting during the AGM. A total of 44 shareholders attended the meeting virtually.

Key Agenda Items

• Adoption of audited financial statements, Directors' Report, and Statutory Auditors' Report for the financial year ended March 31, 2026.
• Confirmation of interim dividend payment to Non-Cumulative Redeemable Preference Shares (NCRPS) holders.
• Reappointment of Mr. Rahul Gupta as a Director, retiring by rotation.
• Ratification of Cost Auditor's remuneration for the financial year ended March 31, 2027.

What the Numbers Show

Promoter participation was absolute, with the promoter group casting all 255,989,649 shares held in favor of every resolution. Public non-institutional shareholders showed high engagement relative to their holding size, with 0.30% of outstanding shares polled, resulting in over 99.4% support for all items.