Voltas Hit with Rs. 15.32 Crore GST Demand for Alleged Tax Discrepancies and Excess Input Credit

On February 27, 2025, Voltas Limited received an order from the Office of the Commissioner, Central GST Commissionerate, Dehradun, demanding Rs. 15.32 crores in tax and imposing a penalty of Rs. 1.53 crores under Section 73 of the Central Goods and Services Tax Act, 2017. The order alleges discrepancies in tax liability between GSTR-3B returns and E-Way bills, along with excess input tax credit claimed for the financial year 2020-21.

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Voltas Limited has responded to the order, stating that it is “in the process of filing an appeal against the said Order.” The company has also assured stakeholders that “there is no material impact on the financials, operations, or other activities of the Company due to this penalty.” The tax demand and penalty were issued under both the Central GST Act, Uttarakhand GST Act, and the Integrated GST Act, 2017​.

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This is not the first time Voltas has faced scrutiny from GST authorities.

• August 2024: The company received a tax demand of Rs. 0.33 crores and a penalty of Rs. 0.03 crores from the Central GST & Central Excise, Guwahati, for disallowed input tax credit related to FY 2019-20.
• January 2025: Voltas was issued a GST demand notice of Rs. 12.87 crores for alleged excess input tax credit availed in 2020​.

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These ongoing tax demands suggest continued scrutiny of Voltas’s tax filings, particularly regarding input tax credit claims. Despite these challenges, the company maintains that its financial and operational stability remains unaffected by these penalties​

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