Innovision receives ₹10.70 Cr GST recovery notice from Gurugram
- Innovision received a show cause notice for ₹10.70 Cr GST recovery from Gurugram authorities
- The demand covers FY21 to FY25 and includes interest and penalties on toll collection services
- Company cites a prior favorable appeal order from Dehradun as grounds to contest the notice
- No final adjudication has occurred; no immediate material financial impact expected
*this image is generated using AI for illustrative purposes only.
Innovision has received a show cause notice proposing a GST recovery of ₹10,70,41,228.15. The notice, dated August 21, 2026, was issued by the Principal Commissioner, Central Goods and Services Tax, Gurugram.
The proposed demand covers tax periods from FY21 to FY25 and includes applicable interest and penalties. It arises from exemptions claimed by the company in respect of certain supplies reported in its GST returns.
Nature of the Demand
The notice was issued under Section 74 of the CGST Act, read with corresponding provisions of the HGST Act and Section 20 of the IGST Act. The breakdown of the proposed recovery is as follows:
| Component | Amount (₹) |
|---|---|
| CGST | 5,35,20,614.07 |
| SGST | 5,35,20,614.07 |
| Total | 10,70,41,228.15 |
The matter specifically concerns the exemption claimed by Innovision regarding User Fee (Toll) Collection Services.
Legal Position and Precedent
Innovision states that the current proceedings are substantially similar to an earlier matter decided in its favor. On August 11, 2026, the Commissioner, CGST (Appeals), Dehradun, issued an Order-in-Appeal that set aside a substantive tax demand under Section 74, along with corresponding interest and major penalties, regarding the company’s Uttarakhand GST registration.
The company intends to rely on this Order-in-Appeal, citing the identical underlying nature of transactions, in its response to the Gurugram Commissionerate.
What the Numbers Show
The total proposed liability of ₹10.70 crore is split equally between central and state taxes, indicating the transactions are treated as intra-state supplies subject to both CGST and SGST. The inclusion of interest and penalties on top of the principal tax amount suggests the authorities view the exemption claims as potentially erroneous or fraudulent under Section 74, which carries higher penalty implications than standard assessment errors.
Financial Impact
Innovision disclosed that no final demand has been adjudicated as of August 26, 2026. Consequently, the company does not expect an immediate material impact on its financial position or operations. It plans to take appropriate legal steps before the competent authority.
Historical Stock Returns for Innovision
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.03% | -7.04% | -10.69% | 0.0% | 0.0% | 0.0% |
How might the outcome of this GST dispute influence Innovision's future tax compliance strategies and internal audit processes?
Could the reliance on the Dehradun Order-in-Appeal set a broader legal precedent for toll collection services across other Indian states?
What are the potential implications for Innovision's cash flow if the ₹10.70 crore demand is eventually upheld despite current non-materialization?
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