V-Guard Industries has received a final audit report from the GST authorities covering the period from FY 2020-21 to 2023-24. The report identifies a short payment of INR 17,75,91,197 related to the availment of input tax credit. The company stated that this is not a demand order and intends to challenge the observations, citing strong grounds on merits to rebut the findings provided by the authorities.
Overview of Audit Findings
V-Guard Industries announced the receipt of a final audit report in Form GST ADT-02 on April 6, 2026. The audit, conducted by the Assistant Commissioner of the CGST-Audit Circle in Kashipur, covers financial operations spanning from FY 2020-21 to 2023-24. The authority has flagged concerns regarding the inadmissible or excess availment of Input Tax Credit (ITC) and discrepancies in GSTR-9 reconciliation.
Financial Implications
The audit report highlights a potential short payment of GST amounting to INR 17,75,91,197. While the report mentions that additional interest and penalties are applicable, these specific amounts have not been quantified at this time. The authorities have referenced the potential for levies under section 74 of the relevant tax framework.
Company Stance and Next Steps
V-Guard Industries has clarified that the received document is an audit report and not a formal demand order. The company is currently conducting a thorough evaluation of the report’s contents and plans to take formal steps to rebut the observations. Management maintains that they have strong grounds to contest these findings and will pursue the appropriate legal and administrative channels to challenge the report’s conclusions.
Source: BSE
