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V-Guard

V-Guard Receives ₹20.7 Crore GST Notice for Extra Budget Help

Popular electronics brand V-Guard Industries Ltd. has received a Goods and Services Tax (GST) demand notice of ₹20.7 crore from the Central GST Department (Gangtok Division, Sikkim). The notice, sent on June 23, 2025, says that the company took more benefit than allowed under a government budgetary support scheme launched during the GST rollout.

What Is the Notice About?

The notice says that V-Guard claimed extra budgetary support under a 2017 incentive scheme by the Department of Industrial Policy and Promotion (DIPP). This scheme was created to support industries operating in hilly and backward states by giving them GST relief.

👉 Demand Details:

This amount relates to a 8-year period, from FY 2017–18 to FY 2024–25.

Why V-Guard Was Eligible

V-Guard has manufacturing units in Sikkim, a state covered under the budgetary support scheme. According to the government, the company claimed more support than what was allowed, and now the department wants to recover the extra money along with interest.

V-Guard’s Response

V-Guard has not accepted the demand and is currently reviewing legal options. The company says it believes it followed all rules properly and has shared this information with the public in good faith, as per SEBI rules, to keep investors informed.

About V-Guard Industries

Founded in 1977, and based in Kochi, Kerala, V-Guard Industries is a well-known Indian brand in home and electrical appliances. Its products include:

V-Guard is listed on both BSE and NSE with the stock code VGUARD, and has a strong presence across India, especially in the South.

FAQs

1. What is the GST Budgetary Support Scheme?

It’s a government benefit launched in 2017 to support industries in backward regions after GST was introduced. Companies were given partial tax refunds as budgetary support.

2. Why did V-Guard receive this notice?

Authorities claim that V-Guard claimed more support than allowed under the scheme for 8 years and are now asking the company to pay it back with interest.

3. Has V-Guard agreed to pay the amount?

No. V-Guard has said it is reviewing legal options and believes it has strong grounds to contest the demand.

4. Does this affect V-Guard’s operations or stock?

As of now, there’s no penalty or restriction on operations. The company is functioning normally and has simply received a tax recovery notice.

5. Are other companies getting similar notices?

Yes, many companies operating in incentive zones have been receiving similar GST notices due to differences in interpretation of the support limits.

Conclusion

The ₹20.7 crore GST notice to V-Guard brings attention to the complexities of government incentive schemes. While the intention behind these schemes is to promote industries in specific regions, lack of clarity can lead to issues like this one.

V-Guard’s proactive disclosure and commitment to follow legal procedures show transparency and strong corporate ethics. As the case develops, it will highlight how well-defined and fairly implemented our tax policies really are.