TVS Electronics Resolves GST Dispute, Reduces Demand from Rs. 2.31 Cr to Rs. 48,190

TVS Electronics has successfully resolved a material pending litigation with the Karnataka Goods and Services Tax (GST) Department, significantly reducing the initial demand from Rs. 2.31 crore to Rs. 48,190.

Dispute Details

The GST dispute centered around vendor payments made after 180 days from the invoice date for the financial year 2021-22. The Karnataka GST Department had initially issued a show cause notice under Section 73(1) of the CGST/KGST Act 2017, demanding Rs. 2.31 crore, which included a penalty of Rs. 0.96 crore.

Resolution Process

TVS Electronics took proactive steps to address the issue:

Filed a reply to the show cause notice
Submitted supporting documents to justify their position

As a result of these efforts, the GST department significantly reduced the demand amount.

Financial Implications

The resolution of this dispute has led to a substantial reduction in the company's potential financial liability:

Particular	Amount
Initial Demand	Rs. 2.31 crore
Final Demand	Rs. 48,190
Reduction	97.91%

The final amount of Rs. 48,190 includes interest and penalty. TVS Electronics has stated that they will remit this amount to conclude the proceedings.

Company's Financial Position

Despite this GST dispute, TVS Electronics' overall financial position remains stable. The company reported:

Financial Metric	Amount (Rs. crore)	YoY Change
Total Assets	260.70	+6.71%
Current Assets	178.70	+0.51%
Total Equity	92.90	-5.97%

The company's ability to resolve this GST dispute with a significantly reduced liability demonstrates its effective management of regulatory challenges. This resolution is expected to have a minimal impact on the company's financial statements, given the substantial reduction in the demanded amount.

TVS Electronics' proactive approach in addressing this issue and providing necessary documentation to support their case highlights the company's commitment to regulatory compliance and financial transparency.

Investors and stakeholders may view this resolution positively, as it removes a potential financial uncertainty and showcases the company's ability to effectively manage and resolve regulatory disputes.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.83%	-10.69%	-20.19%	+24.91%	+44.98%	+381.14%

TVS Electronics Limited (TVS-E) has reported a robust financial performance for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

Consolidated revenue reached Rs. 128.00 crores, marking a 22% year-on-year increase
EBITDA rose by 81% to Rs. 5.00 crores
Net profit stood at Rs. 1.50 crores

Segment-wise Performance

Products and Solutions Group

Revenue: Rs. 93.00 crores (27% YoY growth)
Growth driven by higher volumes in existing programs and new product offerings
Focus on manufacturing and logistics segments

Customer Support Services

Revenue: Rs. 35.00 crores (10% YoY growth)
Growth supported by higher volumes across all business verticals

H1 FY26 Performance

Metric	Amount (Rs. crores)	YoY Growth
Revenue	224.00	4%
EBITDA	6.00	5%
Net Loss	2.00	-

Operational Insights

The company operates its Tumakuru facility on a single-shift basis, with capacity for three shifts
Focus on B2B sales through channel partners
Key sectors: Government, BFSI, retail, manufacturing, and logistics
R&D investment target: 2-3% of revenue

Future Outlook

TVS Electronics continues to invest in growth initiatives, including:

Expansion of sales channels in Nepal and Sri Lanka
Development of remote infrastructure management services (TVS Aikya)
Exploration of opportunities in auto industry, power electronics, and industrial electronics for EMS business

The company's strategic focus on B2B sales, coupled with its diverse product and service offerings, positions it well for continued growth in the Indian electronics market.

Note: The financial figures mentioned are for the quarter ended September 30, 2025.