Mumbai, February 28, 2025 – Voltas Ltd (BSE: 500575, NSE: VOLTAS) announced today that it received an order from the Office of the Commissioner, Central GST Commissionerate, Dehradun, Uttarakhand, demanding a tax payment of ₹15.32 crore, along with a penalty of ₹1.53 crore, relating to discrepancies in tax liabilities and input tax credits for FY 2020-21.
Regulatory Update and Details:
The Central GST authority alleges differences between reported liabilities in GSTR-3B returns and corresponding E-Way bills, alongside claims of excess input tax credit utilization. The tax and penalty notices were issued under Section 73 of the Central and Uttarakhand Goods and Services Tax Acts, 2017, read with Section 20 of the Integrated GST Act, 2017.
| Particulars | Amount (₹ Crore) |
|---|
| GST Tax Demand | 15.32 |
| Penalty | 1.53 |
| Total | 16.85 |
Voltas Ltd received this order on February 27, 2025, and is currently preparing to appeal against this decision.
No Material Financial or Operational Impact
Despite the tax and penalty demands, Voltas Ltd has stated clearly that this event will not materially affect its financial position, operational capabilities, or ongoing business activities.
Management Commentary:
Ratnesh Rukhariyar, Company Secretary and Compliance Officer, reassured stakeholders, stating,
“There is no material impact on the financials, operations, or other activities of the company due to this penalty. We are actively preparing our appeal to challenge this order.”
Strategic Outlook:
The company remains confident in its compliance practices and will contest the GST Commissioner's allegations through legal channels. Investors and market participants should remain watchful for updates related to the appeal and final resolution of this matter. The clarity provided by the company should offer reassurance to shareholders and maintain investor confidence amid regulatory scrutiny.
Investor Takeaway:
Voltas Ltd's proactive approach in addressing this tax dispute underscores its commitment to regulatory compliance and transparent communication, vital aspects for maintaining market trust and investor interest.