TVS electronics resolves ₹25.65 crore tax dispute, demand vacated

TVS Electronics Limited has disclosed the resolution of a material pending litigation with the Uttar Pradesh Goods & Services Tax Department, as per an intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, dated December 13, 2025. The dispute originated from a show cause notice issued under Section 73(1) of the CGST/UPGST Act 2017, demanding ₹25.65 crore, which included a penalty of ₹2.33 crore, for the financial year 2021-22.

The demand was related to alleged excess input tax credit (ITC) claims and suppression of turnover. However, following the company's submission of supporting documents and a comprehensive reply, the department thoroughly examined the case. As a result of this examination, the show cause notice has been vacated, and no demand has been raised against TVS Electronics.

This positive development eliminates the initial demand. The actual demand has been confirmed as nil, with the company’s reply and evidence leading to the full resolution of the matter.