Voltas Receives GST Demand Orders Worth ₹27.04 Lakh with Penalties from CGST Authorities

Voltas has received two separate GST demand orders from Central Goods and Services Tax (CGST) authorities, with combined tax demands totaling ₹27.04 lakh and equivalent penalty amounts. The company received both orders on December 31, 2025, and has indicated it will file appeals against the demands.

First GST Demand Order Details

The Office of the Deputy Commissioner, CGST and Central Excise, Bidhan Nagar Division, Kolkata North Commissionerate, West Bengal issued an order dated December 31, 2025, under Section 74 of the Central Goods and Services Tax Act, 2017. The order was received by the company on December 31, 2025, at 12:19 PM.

Parameter	Details
Tax Demand	₹16.42 lakh
Penalty Amount	₹16.42 lakh
Allegation	Short payment of GST
Period Covered	FY 2018-19 to FY 2023-24
Legal Provision	Section 74 of CGST Act, 2017 with West Bengal GST Act, 2017

Second GST Demand Order Details

The Office of the Superintendent of CGST, Central Tax, Raipur, Chhattisgarh issued a separate order dated December 27, 2025, under Section 74 of the Central Goods and Services Tax Act, 2017 read with the Integrated Goods and Services Tax Act, 2017. This order was received by the company on December 31, 2025, at 10:04 PM.

Parameter	Details
Tax Demand	₹10.62 lakh
Penalty Amount	₹10.62 lakh
Allegation	Disallowance of Input Tax Credit
Period Covered	FY 2018-19 to FY 2021-22
Legal Provision	Section 74 of CGST Act, 2017 with IGST Act, 2017

Company's Response and Impact Assessment

Voltas has stated that both orders will be contested through the appellate process. The company is in the process of filing appeals against both GST demand orders issued by the respective CGST authorities.

Regarding the financial impact, the company has disclosed that there is no material impact on the financials, operations, or other activities of the company from these GST demands. The total exposure including penalties amounts to ₹54.08 lakh across both orders, covering various financial years from 2018-19 to 2023-24.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.70%	-0.75%	+0.58%	+5.34%	-22.66%	+67.66%

Voltas has received significant tax relief with the reduction of its tax demand from ₹2.65 billion to ₹107.70 million. This development marks a substantial financial reprieve for the consumer durables company, representing a decrease of approximately 95.9% in the original tax demand.

Tax Demand Reduction Details

The company has formally informed stakeholders about this major reduction in its tax liability. The following table illustrates the magnitude of this relief:

Parameter:	Amount
Original Tax Demand:	₹2.65 billion
Revised Tax Demand:	₹107.70 million
Reduction Amount:	₹2.54 billion
Percentage Reduction:	95.9%

Financial Impact

This substantial reduction in tax demand provides significant financial relief to Voltas. The decrease from ₹2.65 billion to ₹107.70 million represents a major positive development for the company's financial position. The reduced tax liability is expected to improve the company's cash flow situation and provide greater financial flexibility for its operations.

Company Position

Voltas operates in the consumer durables sector and this tax relief comes as a welcome development for the company. The significant reduction in tax demand demonstrates the company's successful handling of tax-related matters and provides clarity on its financial obligations. This development is likely to be viewed positively by investors and stakeholders as it reduces a significant financial burden on the company.