V-Guard Industries Receives Show Cause Notice on Excess ITC Availment
V-Guard Industries Limited has confirmed the receipt of a Show Cause Notice (SCN) concerning the availment of Input Tax Credit (ITC). The communication was received from the Joint Commissioner, CGST, Audit Commissionerate, Dehradun, on April 14, 2026.The notice pertains to the period spanning Fiscal Year (FY) 2020-21 through 2023-24. The core issue outlined in the communication involves allegations related to the inadmissible, wrong, or excess availment of ITC and a short payment identified during the GSTR-9 reconciliation process.
The notice highlights significant potential financial implications for the company. The short payment of GST communicated amounts to INR 17,75,91,197, with interest and penalty components noted as not quantified.
The material details from the Show Cause Notice are summarized below:
| Detail | Specification | Information |
|---|---|---|
| Authority Issuing Notice | Joint Commissioner, CGST, Audit Commissionerate, Dehradun | |
| Nature of Notice | Show Cause Notice under section 74(1) of the CGST Act, 2017 | |
| Period Covered | FY 2020-21 to 2023-24 | |
| Observed Issues | Related inadmissible/wrong/excess availment of ITC and short payment in GSTR-9 reconciliation | |
| Potential Short Payment | INR 17,75,91,197 | |
| Penalty/Interest Status | Show cause notice proposed levy of penalty under section 74(1) and interest under section 50(3)/(1), although not quantified. |
The notice was issued subsequent to the final audit report (GST ADT-02), the receipt of which had previously been disclosed on April 7, 2026. The company stated that its management is currently evaluating the notice and taking appropriate steps, noting that the communication does not constitute a final demand order.
VGUARD Stock Price Movement
Today, V-Guard Industries Limited shares edged higher, settling at ₹321.3, marking a gain of 2.12%. Activity today saw significant investor interest, with 179,193 shares transacted in the equity.Source:
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