V-Guard Receives Rs. 20.7 Crore GST Demand Notice for Excess Budgetary Support
V-Guard Industries receives Rs. 20.7 crore GST demand notice for excess budgetary support, plans to challenge the claim.
V-Guard Industries Ltd., a prominent player in India’s consumer electricals and electronics space, has disclosed that it received a Goods andServices Tax (GST) demand notice amounting to Rs. 20.7 crore from the Central GST Department, Gangtok Division, Sikkim. The notice was received on June 23, 2025, and relates to excess budgetary support allegedly claimed by the company under...
V-Guard Industries Ltd., a prominent player in India’s consumer electricals and electronics space, has disclosed that it received a Goods andServices Tax (GST) demand notice amounting to Rs. 20.7 crore from the Central GST Department, Gangtok Division, Sikkim. The notice was received on June 23, 2025, and relates to excess budgetary support allegedly claimed by the company under the government’s GST regime incentive scheme.
According to the official report, the demand comprises:
- Rs. 14.90 crore in excess tax support, and
- Rs. 5.79 crore in interest charges,
bringing the total to Rs. 20,70,28,577.
The demand is based on a 2017 government notification issued by the Department of Industrial Policy and Promotion (DIPP), which introduced a budgetary support scheme to encourage industrial development in select states under the new GST regime. V-Guard’s manufacturing units in eligible regions apparently availed benefits under this scheme.
The notice covers a period of eight financial years, from FY 2017-18 to FY 2024-25, and claims that the company received more financial assistance than allowed. The authorities now seek recovery of this "excess" amount, along with interest.
Complete Ready to Use PDFs of 200+ Agreements Click here
In its report, V-Guard stated that it believes it has strong grounds to contest the demand. The company is currently evaluating legal and procedural options to respond to the notice appropriately. No penalties or sanctions beyond the tax and interest amounts were mentioned in the communication.
The company explained that the information has been shared in good faith and in compliance with SEBI regulations to maintain transparency with investors and stakeholders.
About V-Guard Industries
Founded in 1977 and headquartered in Kochi, Kerala, V-Guard Industries Ltd. is one of India’s leading consumer electrical companies. It manufactures a wide range of products including voltage stabilizers, water heaters, pumps, kitchen appliances, fans, cables, solar solutions, and inverters. The company is known for its strong presence in southern India and has steadily expanded across the country.
V-Guard is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) under the symbol VGUARD. Over the years, it has built a reputation for innovation, quality, and customer trust, serving millions of households and businesses across India.
GST READY RECKONER: Complete Topic wise Circulars, Instructions & Guidelines Click here
Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick update
