Tax & Penalty29 Apr 2026, 01:52 pm
VMS Industries receives ₹19.88 Cr GST demand & penalty
AI Summary
VMS Industries Ltd has received an Order-in-Original from the Joint Commissioner, Central GST, Bhavnagar, confirming a demand for ₹994.09 Lakhs in tax and an equal amount in penalty, totaling ₹1988.18 Lakhs for the financial year 2024-25. The order, received on April 28, 2026, stems from a Show Cause Notice dated August 12, 2025, regarding alleged receipt and issuance of bogus invoices without actual supply of goods. This demand represents approximately 6.89% of the company’s turnover/net worth for FY 2024-25. The company is evaluating the order and intends to file an appeal, stating it has adequate grounds to contest the demand successfully and expects no material impact on its operations.
Key Highlights
- VMS Industries received a GST demand and penalty order totaling ₹19.88 Cr.
- The order includes ₹9.94 Cr tax and ₹9.94 Cr penalty for FY 2024-25.
- This amount is 6.89% of the company's FY25 turnover/net worth.
- The demand stems from alleged bogus invoice transactions.
- The company plans to appeal the order, expecting no material operational impact.