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Virtuoso Optoelectronics GST Demand Notice of ₹4.79 Crore: Details & Impact
Team Finance Saathi
27/Dec/2024
What's covered under the Article:
- Virtuoso Optoelectronics has received a ₹4.79 crore GST demand order from Nashik authorities for FY 2017-18 and FY 2018-19.
- The company deems the GST claims untenable and plans to file an appeal against the order with the appellate authority.
- Virtuoso Optoelectronics does not expect a material impact on its financial or operational activities from the GST demand.
Virtuoso Optoelectronics Limited, a key player in the optoelectronics sector, has recently received a significant GST demand order from the Additional Commissioner of CGST & Central Excise in Nashik. The order, which pertains to the financial years 2017-18 and 2018-19, includes a demand of Rs 4.79 crore (Rupees Four Crores Seventy-Nine Lakhs Thirty-Three Thousand One Hundred Thirty-Two Only), alongside penalties and applicable interest.
In accordance with SEBI Listing Regulations, the company has promptly disclosed this development to the BSE and NSE. As per the required disclosure guidelines, the company has shared the details of this action under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The formal order was received by the company on December 27, 2024, and the details are now available for public review.
While the company acknowledges the receipt of this demand, it believes the claims made in the order are legally untenable. According to legal counsel, there are existing judicial precedents that challenge the legitimacy of such a claim under the GST Act. The company plans to file an appeal against the order, which it believes is without merit. Virtuoso Optoelectronics is committed to resolving this matter in a timely and legal manner.
From an operational perspective, the company does not foresee any material impact on its financials, operations, or business activities due to this demand. Virtuoso Optoelectronics has reassured investors that its day-to-day operations will continue unaffected by this legal matter. The company will also continue to update the stock exchanges regarding any material developments in this case.
This issue follows from an earlier GST compliance review by the CGST Nashik authorities, leading to the formal demand for Rs 4.79 crore. In light of this development, the company is confident that its legal team will be able to successfully challenge the order and that no financial risk will be posed to the business in the long term.
The company has also ensured compliance with SEBI’s disclosure requirements and has made the information available on its official website, in line with Regulation 46(2) of the Listing Regulations. The company's investors and stakeholders can access further details on the company website for updates.
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