NSE/BSE Codes: NSE: VOLTAS, BSE: 500575

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under SEBI Listing Regulations Regulation 30 regarding resolution of a Goods and Services Tax (GST) show cause notice. The disclosure confirms that the GST Authority has dropped the notice and granted complete relief to the company.

Involved Parties / Authorities:

  • Office of the Deputy Commissioner State Tax, Andheri East, Mumbai, Maharashtra (GST Authority)
  • Voltas Limited

Date / Timeline of Event:

  • 18th September 2026: Show Cause Notice issued by GST Authority
  • 21st September 2026: Initial intimation to exchanges about receipt of notice
  • 9th October 2026: GST Authority order dropping the notice (received after office hours)
  • 12th October 2026: Disclosure filed with exchanges (first working day after order receipt)

Brief Description of Outcome / Dispute:

The GST Authority had issued a show cause notice alleging wrongful availment of Input Tax Credit and short payment of tax for the financial year 2022-23. The notice questioned why tax amount of ₹15.43 crores should not be demanded along with interest and penalty of ₹14.79 crores. Based on the company's detailed submissions, the GST Authority accepted Voltas' contention and dropped the notice entirely.

Impact of Outcome:

Financial Impact:

No financial impact. The complete relief means the company will not be required to pay the demanded tax amount of ₹15.43 crores, interest, or penalty of ₹14.79 crores. The resolution avoids a potential total financial liability of approximately ₹30.22 crores.

Operational / Business / Strategic Impact:

No operational or business disruption. The favorable outcome maintains normal business operations without any compliance burden or restrictions. The resolution positively impacts investor confidence by demonstrating the company's ability to successfully address regulatory challenges.

Other Implications:

The successful resolution of the GST matter enhances the company's reputation for regulatory compliance and effective tax management. It demonstrates the strength of the company's legal and compliance position regarding GST matters.

Next Steps / Required Actions:

No further actions required. The matter has been conclusively resolved with the GST Authority's order dropping the notice. The company has completed its disclosure obligations to the stock exchanges.