V.I.P. Industries Limited has received an order from the Assistant Commissioner, CGST and Central Excise, Nashik-I Division, imposing a penalty of ₹41,03,005. The penalty pertains to an alleged contravention regarding the passing of Input Tax Credit (ITC). The company has stated there is no material impact on its financial or operational activities and plans to challenge the order by filing an appeal before the relevant Appellate Authorities within the stipulated timeframe.
Details of the Tax Order
On March 31, 2026, V.I.P. Industries Limited received an official order from the Assistant Commissioner of CGST and Central Excise, Nashik-I Division, Maharashtra. The authority has levied a penalty amounting to ₹41,03,005, which covers both CGST and SGST liabilities under Section 122 of the CGST Act, 2017.
Basis of Allegation
The order stems from allegations related to the passing of Input Tax Credit (ITC) in a manner deemed to be in contravention of the established provisions of the CGST Act and its associated rules. This matter specifically concerns tax compliance practices within the Nashik-I division.
Company Response and Outlook
V.I.P. Industries Limited has confirmed that the financial penalty will have no material impact on the company’s overall financial health, day-to-day operations, or other corporate activities. To address the findings, the company intends to exercise its legal right to file an appeal against the order before the appropriate Appellate Authorities. This process will be conducted in accordance with the timelines prescribed by law.
Source: BSE
