Shares of real estate developer Prestige Estates Projects Limited surged 2% higher on 4 September after the company announced that its subsidiary, Prestige Office Ventures, had received a show-cause notice from the Directorate General of Goods and Services Tax Intelligence (DGGI), Hyderabad.

The notice, dated 2 September 2025, was given in accordance with the Central Goods and Services Tax Act, 2017, the Telangana Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act of 2017.

The show-cause letter charges nonpayment or short payment of goods and services tax, as well as nonreversal of input tax credit, between February 2020 and March 2024.

According to the notice, Prestige Office Ventures must appear before the additional or joint commissioner, Hyderabad CGST Commissionerate, within 30 days after receiving the notice. The tax authorities have suggested a demand of ₹160.82 crore, including penalty and interest, under Section 74(1) of the CGST Act, 2017.

The corporation stated that it has examined the situation and believes the demand is not sustainable. It further stated that the notice is being reviewed, and appropriate action will be taken. Prestige Estates underlined that it does not expect any significant impact on its financials.

However, at 12:21 pm, the shares of Prestige Estates shed all their early gains and were trading 0.88% lower at Rs 1,571 on NSE.

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