Wework India receives ₹11.01 Cr CGST show cause notice for excess ITC
- WeWork India received a ₹11.01 crore show cause notice from CGST Mumbai East
- The demand covers alleged excess ITC availment for April 2021 to March 2023
- The amount comprises ₹5.96 Cr in IGST, ₹2.53 Cr in CGST, and ₹2.53 Cr in SGST
- The company denies material impact and is submitting a detailed response
*this image is generated using AI for illustrative purposes only.
WeWork India Management received a show cause cum demand notice of ₹11.01 crore from the Central Goods and Services Tax authorities for the period April 2021 to March 2023.
The notice, dated September 29, 2026, was issued by the Office of the Principal Commissioner of CGST & CX, Mumbai East. It alleges excess availment and utilization of Input Tax Credit (ITC) under Section 74(1) of the CGST Act, 2017, read with corresponding provisions of the Maharashtra GST Act and the Integrated GST Act.
Notice Details and Financial Implications
The regulatory body has demanded the disallowance and recovery of the ITC amounting to ₹11,01,28,801. This demand is split across three tax heads:
| Tax Head | Amount (₹) |
|---|---|
| IGST | 5,95,97,913 |
| CGST | 2,52,65,444 |
| SGST | 2,52,65,444 |
In addition to the principal amount, the notice seeks applicable interest under Section 50(3) and penalty under Section 74(1) read with Section 122(2)(b) of the CGST Act.
Company Response
WeWork India stated that the notice was issued without adequately considering the merits of the case. The company is preparing a detailed response within statutory timelines to substantiate the reconciliation differences between the ITC claimed in Annual Returns (FORM GSTR-9) and the audited financial statements.
The management does not envisage any material impact on its financials, operations, or other activities at this stage. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for WeWork India Management
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.39% | -0.82% | -4.14% | +45.60% | +5.46% | +5.46% |
How might the potential penalty and interest liabilities impact WeWork India's short-term liquidity and cash flow projections?
Could this regulatory scrutiny trigger broader tax audits for other co-working operators in India facing similar ITC reconciliation issues?
What is the likelihood of WeWork India pursuing legal recourse or settlement options if the initial response fails to resolve the demand?
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