On 31st August 2024, Voltas Limited officially informed the stock exchanges of a demand and penalty order issued by the Office of the Assistant Commissioner, Central GST & Central Excise, Division-II, Guwahati. The order, dated 26th August 2024, was received by the company on 30th August 2024 and pertains to the financial year 2019-20.

1. Details of the Order: The order, issued under Section 73 of the Central Goods and Services Tax Act, 2017, demands a tax payment of Rs. 0.33 crore (Rs. 33,40,557/-) and imposes a penalty of Rs. 0.03 crore (Rs. 3,34,055/-) on Voltas Limited. The penalty is the result of the disallowance of input tax credit (ITC) that the company had availed during the 2019-20 financial year.

2. Company's Response and Appeal: Voltas Limited has stated that it is in the process of filing an appeal against the said Order. The company maintains that there is no material impact on its financials, operations, or other activities due to this penalty. The management is confident in addressing the issue through the proper legal channels and expects a favorable outcome.

3. Compliance and Disclosures: In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Voltas has provided all the necessary information as required. The details of the order and the company's response have been disclosed to the BSE Limited and the National Stock Exchange of India Limited.

4. Conclusion: The situation is being handled in accordance with the legal and regulatory frameworks, ensuring that Voltas Limited remains compliant with all statutory obligations. The company's decision to appeal reflects its commitment to safeguarding its financial integrity and operational continuity. Stakeholders have been assured that there is no material impact expected on the company’s overall performance.

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