Voltas GST demand slashed to ₹11 crore from ₹265 crore in Uttarakhand

Air-conditioning maker and engineering services provider Voltas Ltd on Wednesday (December 31) informed that the office of the Principal Commissioner, Central GST Commissionerate, Dehradun, has reduced a previous GST tax demand from ₹265.25 crore to ₹10.77 crore, along with interest and penalty, following submissions and explanations provided by the Company.

The original show-cause notice had been issued under the Central Goods and Services Tax Act, 2017, alleging short payment of GST for financial years 2018–19 to 2020–21 by Universal Comfort Products Ltd (UCPL), which merged with Voltas during the financial year 2020–21.

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The show-cause notice had sought an explanation on why the total tax demand of ₹265.25 crore should not be imposed. The commissionerate, after evaluating the company’s detailed submissions, issued an order on December 30, 2025, reducing the demand to ₹10.77 crore along with applicable interest and penalty.

Voltas is evaluating the order and will take appropriate actions, including filing an appeal before the Commissioner (Appeals). The company has also filed a writ petition before the high court of Uttarakhand challenging the SCN, which is currently pending for hearing.

The company stated that there is no material impact on its financials, operations or other activities due to the penalty. The order was received on December 30, 2025.

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Shares of Voltas Ltd ended at ₹1,361.50, up by ₹10.80, or 0.80%, on the BSE today, December 31.