Vedant Fashions faces GST recovery order, penalties for ineligible ITC

Vedant Fashions Limited announced on December 1, 2025, that it received an Order-in-Original dated November 20, 2025, from the Office of the Deputy Commissioner of CGST, Division-X, Mumbai West. The order pertains to the periods FY 2017-18, FY 2018-19, and FY 2019-20. The recovery order was issued under sections 50, 74, 122, and 125 of the Central Goods and Service Tax Act, 2017, along with corresponding sections of Maharashtra State Goods and Services Act, 2017, and Integrated Goods and Service Tax Act, 2017.

The order, served on Manyavar Creations Private Limited (now amalgamated into Vedant Fashions Limited), includes the appropriation of ineligible Input Tax Credit (ITC) amounting to ₹1,73,471, which has already been paid or reversed. Additionally, the company faces recovery of applicable interest on this ITC amount.

Penalties outlined in the order include ₹1,73,471 under GST laws for the ITC amount, as well as an aggregate penalty of ₹50,000 for IGST, ₹25,000 for CGST, and ₹25,000 for SGST. Vedant Fashions stated that, apart from these specified monetary impacts, there is no other significant impact on the financial or operational activities of the company. The company plans to review the order and take appropriate action within the stipulated timeline.