VMS Industries received an Order-in-Original from GST Bhavnagar demanding ₹19.88 crore for alleged tax evasion via circular trading and bogus invoices.
The order alleges the company fraudulently availed and passed on input tax credit without actual goods movement, contravening multiple CGST Act provisions.
The company is evaluating the order and plans to file an appeal, stating the demand represents 6.89% of its FY25 turnover with no material operational impact.
The adjudication order confirms a reduced demand of ₹4.99 crore while dropping allegations for transactions worth ₹16.89 crore due to insufficient evidence.