Welspun Enterprises receives ₹15.37 crore GST show cause notice from Haryana
- Welspun Enterprises received a show cause notice from Haryana GST authority for FY23
- Proposed tax demand stands at ₹15.37 crore plus interest and penalty
- Notice alleges short payment due to delayed vendor payments and ITC violations
- Company disputes the demand and anticipates no material financial impact
*this image is generated using AI for illustrative purposes only.
Welspun Enterprises Limited received a show cause notice from the State GST Authority in Haryana regarding alleged tax short payment and Input Tax Credit (ITC) violations for FY23.
The Deputy Commissioner of State Tax, Haryana, issued the notice under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) and the Haryana Goods and Services Tax Act, 2017 (HRGST Act). The notice proposes the imposition of tax amounting to ₹15.37 crore, along with applicable interest under Section 50 of the CGST/HRGST Acts and penalty under Section 73.
Nature of Alleged Violations
The dispute centers on two primary issues identified by the tax authority:
- Failure to make payments to vendors within the stipulated 180-day period.
- Alleged excess availment of ITC on certain supplies in violation of Section 16 of the CGST/HRGST Acts.
The notice was received on September 30, 2026. The period covered by this tax litigation is FY23.
Company Response and Impact Assessment
Welspun Enterprises has assessed the demand as not maintainable and is preparing a detailed reply to challenge the notice. The company maintains that the demand raised in the show cause notices lacks merit and expects it to be set aside during adjudication proceedings.
The company stated that it does not foresee any material impact on its financial, operational, or other activities as a result of this notice.
| Particulars | Details |
|---|---|
| Authority | Deputy Commissioner of State Tax, Haryana |
| Period Covered | FY23 |
| Proposed Tax Demand | ₹15.37 crore |
| Legal Sections Invoked | Section 73 (Penalty), Section 50 (Interest) |
| Date of Receipt | September 30, 2026 |
Historical Stock Returns for Welspun Enterprises
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.21% | -5.24% | +10.80% | +72.72% | +48.42% | +613.45% |
How might the outcome of this FY23 adjudication influence Welspun Enterprises' approach to vendor payment cycles and ITC compliance in future fiscal years?
Could a prolonged legal dispute over the ₹15.37 crore demand impact Welspun Enterprises' credit ratings or borrowing costs given its infrastructure-heavy business model?
Is there a pattern of similar GST enforcement actions against other major Indian infrastructure firms that suggests a broader regulatory tightening on ITC claims?
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