Central Tax Commissionerate Orders Manoj Vaibhav Gems on ITC Misuse of IPO Expenses
Manoj Vaibhav Gems N Jewellers Ltd has received an order from the Office of the Principal Commissioner of Central Tax, Visakhapatnam, concerning the availment and utilization of Input Tax Credit (ITC) accrued on Initial Public Offer (IPO) expenses. The order was issued on June 22, 2026.The tax authorities confirmed demands and equivalent penalties related to alleged irregular use of ITC amounting to Rs. 2,92,10,460/-. This ITC relates to IPO expenses incurred for the period from December 2021 to March 2025, which were allegedly treated as an exempt supply transaction in securities under Section 17(3) of the CGST Act, 2017.
The cumulative monetary impact confirmed by the order stands at Rs. 5,84,20,920/ (comprising a total tax demand of Rs. 2,92,10,460/- and a cumulative penalty of Rs. 2,92,10,460/), along with applicable interest.
The confirmed demands and penalties were structured across two financial years:
| Financial Year | Tax Demand Amount (INR) | Penalty Amount (INR) |
|---|---|---|
| FY 2021-22 to 2023-24 | Rs. 2,84,97,628/- | Rs. 2,84,97,628/- |
| FY 2024-25 | Rs. 7,12,832/- | Rs. 7,12,832/- |
The specific breakdown of the tax demand for the period FY 2021-22 to 2023-24 included IGST: Rs. 2,20,50,300/-, CGST: Rs. 32,23,664/-, and SGST: Rs. 32,23,664/-. For FY 2024-25, the tax demand was IGST: Rs. 7,10,694/-, CGST: Rs. 1,069/-, and SGST: Rs. 1,069/-.
The company stated that it is currently evaluating the order and plans to file an appeal before the ADC Appeals, Central Tax, Guntur within the statutory timelines. Management noted that there is no impact of this matter on the operational activities of Manoj Vaibhav Gems N Jewellers Ltd.
MVGJL Stock Price Movement
Shares of Manoj Vaibhav Gems N Jewellers Limited slipped today, settling at ₹143.66 after shedding 2.92% in post-market trading.The stock recorded a volume of 80,606 shares and traded within an intraday range that spanned from a low of ₹143.1 to a high of ₹149.47.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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