Fusion Finance , a prominent financial services company, has received a show cause notice from the Goods and Service Tax (GST) Authority, specifically from the Joint Commissioner Corporate Circle in Varanasi, Uttar Pradesh. The notice, issued under section 73 of the Central Goods and Services Tax (CGST) Act, directs the company to pay a total of Rs 2.84 crore.

Breakdown of the Demand

The GST Authority's demand breaks down as follows:

Allegations and Time Frame

The show cause notice alleges that Fusion Finance:

1. Claimed excess Input Tax Credit (ITC)
2. Failed to reverse ITC as per rules 42/43 of the CGST Act, 2017

These alleged violations are said to have occurred during the period from April 2021 to March 2022.

Company's Response

In response to the notice, Fusion Finance has stated that it believes it has adequate legal grounds to substantiate its position. The company does not anticipate any material impact on its financial, operational, or other activities due to this notice.

Regulatory Compliance

In line with regulatory requirements, Fusion Finance has disclosed this information to the National Stock Exchange of India Limited and BSE Limited, where its shares are listed.

Looking Ahead

As the company prepares to address the allegations, investors and stakeholders will be watching closely to see how this issue unfolds. Fusion Finance's confidence in its legal position suggests that it may contest the notice, potentially leading to further developments in this matter.

The financial services sector continues to face regulatory scrutiny, highlighting the importance of robust compliance mechanisms in the industry. As companies navigate complex tax regulations, such incidents underscore the need for meticulous financial management and reporting practices.

Fusion Finance , a prominent player in the financial services sector, has announced a significant leadership restructuring aimed at strengthening its governance and compliance frameworks to support future growth plans.

New Board Appointments

The company's Board of Directors has approved the appointment of Mr. Rajeev Sardana as an Additional Non-Executive Independent Director for a five-year term, effective August 18, 2025, subject to shareholder approval. Mr. Sardana, a former Executive Management member at HDFC Ltd., brings over three decades of experience in financial services, particularly in retail lending and credit risk management.

In a parallel move, Mr. Sanjay Garyali, who has been serving as the company's CEO since March 2025, has been appointed as an Additional Director designated as Whole Time Director for a five-year term, also effective August 18, 2025. Mr. Garyali's appointment has received prior approval from the Reserve Bank of India (RBI). With 28 years of experience in the finance industry, he previously led the Urban Finance business at L&T Finance, managing a portfolio worth INR 40,000.00 crore.

Key Management Changes

The restructuring extends to several key positions within the company:

1. Mr. Deepak Madaan has resigned from his position as Company Secretary, Chief Compliance Officer & Investor Relations, effective August 17, 2025.

2. Mr. Vikrant Sadana has been appointed as the new Company Secretary & Compliance Officer, effective August 18, 2025. Sadana brings 18 years of experience in corporate governance and compliance.

3. Mr. Nishant Monga joins as the new Chief Compliance Officer from August 18, 2025. Monga is an accomplished professional with over 27 years of experience in ethics, compliance, and risk management across various sectors.

4. Mr. Vikas Jagdish Jajoo has resigned as Head of Internal Audit, effective August 17, 2025.

5. Mr. Satish Mani, currently the Chief Vigilance Officer, has been appointed as the Interim Head of Internal Audit, effective August 18, 2025.

Strategic Implications

These appointments and changes are part of Fusion Finance's strategy to enhance its leadership capabilities and ensure robust compliance and risk management frameworks. The company aims to support its next phase of growth by expanding the breadth of its compliance and secretarial functions while segregating these roles in line with its expansion plans.

The restructuring demonstrates Fusion Finance's commitment to strengthening its corporate governance and adapting to the evolving regulatory landscape in the financial services sector. With these changes, the company is positioning itself for sustainable growth and improved operational efficiency in the coming years.