Voltas slapped with ₹256 crore show-cause notice crore for alleged short payment of GST

Voltas Ltd has been slapped with a show-cause notice of ₹256.25 crore for the alleged short payment of GST, the company said on Wednesday.

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 said in a regulatory filing.

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

“The show cause notice seeks 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 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 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 closed 0.49% higher at ₹1,333 apiece on the National Stock Exchange (NSE) on Wednesday. However, the disclosure came after the market closed.

The stock has gained 2.11% so far this week and 4.06% in June. The scrip lost 9.91% in the first quarter of FY26 and 25.54% on a year-to-date basis.

Voltas has a total market capitalisation of ₹44,106.94 crore, as of July 2, 2025, as per the data on the NSE.