V-Guard Industries has received a Show Cause Notice from the Joint Commissioner, CGST, Audit Commissionerate, Dehradun, regarding tax-related observations for the financial years 2020-21 to 2023-24. The notice highlights potential discrepancies involving the availment of input tax credit and reconciliation of returns. The company is actively evaluating the communication and maintains that it has strong grounds to contest these claims through a formal rebuttal.
Details of the Tax Notice
On April 14, 2026, V-Guard Industries was served with a Show Cause Notice concerning its operations for the period between FY 2020-21 and FY 2023-24. The communication from the tax authorities cites a short payment of Goods and Services Tax (GST) amounting to INR 17,75,91,197. Additionally, the notice proposes the potential levy of interest and penalties under the relevant tax statutes, though these amounts remain unquantified at this stage.
Basis of the Audit Observations
The primary issues identified by the tax authority center on the alleged inadmissible, incorrect, or excess availment of Input Tax Credit (ITC). Furthermore, the notice references inconsistencies found during the reconciliation of GSTR-9 filings. This development follows a final audit report (GST ADT-02) previously shared with the company.
Company Response and Outlook
V-Guard Industries has stated that it is currently in the process of thoroughly reviewing the notice. The management asserts that this is not a demand order but an initial notice. The company plans to take appropriate steps to file a detailed rebuttal, noting that it possesses strong grounds on merits to challenge the findings and observations presented by the audit authorities.
Source: BSE
