V-Guard receives GST Show Cause Notice for ₹17.76 Cr excess ITC
V-Guard Industries Ltd. has received a Show Cause Notice (SCN) from the Joint Commissioner, CGST, Audit Commissionerate, Dehradun, dated April 14, 2026. The SCN, issued under section 74(1) of the CGST Act, 2017, pertains to the alleged availment of excess Input Tax Credit (ITC) and short payment in GSTR-9 reconciliation for the financial years 2020-21 to 2023-24. The communicated short payment of GST is ₹17,75,91,197. While interest and penalty are not yet quantified, their levy is proposed under sections 74(1) and 50(3)/(1). V-Guard is currently evaluating the notice and intends to file a rebuttal, asserting strong grounds to challenge the observations. The company clarified that this SCN is a subsequent step to a final audit report (GST ADT-02) that was previously disclosed on April 7, 2026.
Key Highlights
- V-Guard received a GST Show Cause Notice on April 14, 2026.
- Notice alleges ₹17.76 Cr short GST payment for FY20-24.
- It cites excess ITC availment and GSTR-9 reconciliation issues.
- Company plans to file a rebuttal, confident in its challenge.
- Interest and penalty are proposed but not yet quantified.