TVS Electronics Limited has successfully resolved a significant tax litigation matter with the Uttar Pradesh Goods & Services Tax Department, with the show cause notice being vacated and no financial demand imposed on the company.

GST Show Cause Notice Details

The company had received a show cause notice from the Deputy Commissioner, State Tax, in Lucknow, Uttar Pradesh, under Section 73(1) of the CGST/UPGST Act 2017. The notice pertained to the financial year 2021-22 and involved allegations related to input tax credit claimed in excess and suppression of turnover.

Financial Implications and Resolution

The initial demand raised in the show cause notice amounted to ₹25.65 crores, which included a penalty component of ₹2.33 crores. However, the company maintained that this demand could be reduced upon submission of appropriate supporting documents.

Favorable Outcome

The resolution came after the GST Department conducted a thorough examination of the reply and supporting documents submitted by TVS Electronics Limited. Based on this comprehensive review, the authorities found the company's submissions satisfactory, leading to the vacation of the show cause notice.

TVS Electronics successfully resolved the ₹25.65 crore GST demand notice from UP tax authorities. The show cause notice has been vacated with no actual demand raised after document examination.

Regulatory Compliance

TVS Electronics Limited made this disclosure to both BSE Limited and National Stock Exchange of India Limited on December 13, 2025, fulfilling its regulatory obligations under Regulation 30 of the SEBI listing regulations. The company disclosed this information as part of its compliance with the amended SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which was notified on November 11, 2024. This disclosure pertains to material pending litigation details that listed companies are required to report to stock exchanges.

The successful resolution of this tax matter eliminates a potential financial liability and removes regulatory uncertainty for the company.

TVS Electronics Limited has filed a disclosure under Regulation 10(6) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, following the completion of share allotment under its amalgamation scheme with TVS Investments Private Limited. The disclosure was submitted on December 24, 2025, detailing significant changes in promoter shareholding structure.

Share Allotment and SAST Compliance

The company completed the final step of the amalgamation scheme by implementing share restructuring and filing mandatory regulatory disclosures:

The cancelled shares were fully paid-up equity shares held by TVS Investments Private Limited (Transferor Company), representing 59.84% of TVS Electronics Limited. An equivalent number of new equity shares have been allotted to shareholders of the Transferor Company proportionate to their holdings as on the record date.

Promoter Shareholding Structure Post-Amalgamation

The amalgamation has resulted in significant changes to the promoter shareholding pattern:

Public Shareholding Adjustment

The scheme implementation has resulted in a corresponding adjustment in public shareholding:

Consequently, the promoter and promoter group shareholding reduced by 25,000 shares, with public shareholding increasing correspondingly by the same amount.

Regulatory Timeline and Compliance

The amalgamation scheme has progressed through all regulatory milestones with full compliance:

The newly allotted equity shares rank pari-passu with existing equity shares and are listed on BSE Limited and National Stock Exchange of India Limited. The completion of this share allotment and SAST disclosure marks the final implementation of the NCLT-sanctioned amalgamation scheme, with all regulatory requirements fulfilled and the corporate restructuring now fully effective.