Voltas receives ₹256 crore show cause notice from GST Dept; here is how the stock is faring

At 11:30 AM, the stock was trading at ₹1,378 per share on the National Stock Exchange, jumping 3.39%.

The show-cause notice from the Office of the Principal Commissioner, Central GST Commissionerate, Dehradun, alleges that Universal Comfort Products Limited (UCPL) made short payments of GST between the 2018-19 and 2020-21 financial years.

Voltas merged with UCPL—previously a wholly owned subsidiary—in the 2020-21 financial year.

“The show cause notice seeks an explanation as to why the tax amount of ₹265.25 crores should not be demanded along with interest and penalty,” the company said.

The show cause notice to the firm came under “the Central Goods and Services Tax Act, 2017, read with the Uttarakhand Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017”.

Voltas received the notice on Tuesday, July 1, and is currently in the process of evaluating the matter.

On June 30, the company had received a show cause notice worth ₹31.77 crore for alleged wrongful availment and utilisation of inadmissible or irregular input tax credit and non-payment of GST for the period between FY18 and FY21, Voltas had said in a separate filing.

The notice was received from the Office of the Commissioner, C.G.S.T. & Central Excise, Commissionerate Indore, Madhya Pradesh, under the Central Goods and Services Tax Act, 2017, read with the Madhya Pradesh Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017.

Shares of Voltas on Thursday opened at ₹1,337 apiece on the NSE and have touched an intraday high of ₹1,378.80 so far.

Over the last five trading days, Voltas shares have gained 4.2%. For a month’s period, it has soared over 12%.

However, since January 3, 2025, which is six months, the stock has tumbled 24.5%.

The company’s market capitalisation stands at ₹45,629.01 crore.

Voltas had posted a 107.76% year-on-year (YoY) jump in its consolidated net profit for Q4 FY25 to ₹241 crore against ₹116 crore reported in the year-ago period.

Revenue from operations of the home appliances maker was at ₹4,767 crore in the March quarter of FY25, up 13.42% compared to ₹4,203 crore in Q4 FY24. Its total income was up by 14% in Q4 FY25 at ₹4,847 crore against ₹4,257 crore in the year-ago quarter.

The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 74.6% YoY to ₹332.8 crore in the reporting quarter from ₹191 crore in the same period last year. Its operating margin was at 7% in Q4 FY25 against 4.5% in Q4 FY24.