Radio City gets Rs 89.6 crore GST demand, plans to appeal

LUCKNOW: Music Broadcast Limited, the company behind Radio City, has found itself tuning into a less melodious note after receiving a GST demand order worth Rs 89.63 crore from the Uttar Pradesh tax authorities.

The order, issued by the office of the deputy commissioner in Lucknow under section 73 of the IGST, CGST and SGST Acts, relates to the financial year 2021–22. It breaks down into Rs 48.22 crore in tax, Rs 36.59 crore in interest and Rs 4.82 crore in penalties, spanning CGST, IGST and SGST components.

The demand reached the company late on Friday evening, December 19, just before the weekend, and was formally escalated to the compliance team when offices reopened on Monday morning. In line with Sebi’s disclosure requirements, Radio City promptly informed both the NSE and BSE.

Despite the size of the number, the broadcaster struck a calm note. The company said the order does not have a material impact on its financials or operations at this stage. Backed by preliminary assessments and legal advice, it believes it has strong grounds to contest the demand and plans to file an appeal.

For now, Radio City insists the music is far from stopping. The management maintains that the issue is procedural rather than existential, and that it does not expect any meaningful adverse effect while the matter moves through the appellate route.