GST Department Slaps Rs 5.84 Crore Tax and Penalty on Manoj Vaibhav Gems:

GST Department Slaps Rs 5.84 Crore Tax and Penalty on Manoj Vaibhav Gems Manoj Vaibhav Gems 'N' Jewellers Ltd has informed the stock exchanges that it has received an order from the Office of the Principal Commissioner of Central Tax, Visakhapatnam, regarding the company's claim of Input Tax Credit (ITC) on expenses related to its Initial Public Offering (IPO).

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The GST department alleged that the company improperly availed and utilised ITC of Rs 2,92,10,460 on expenses related to IPO between December 2021 and March 2025. According to the department, IPO transactions pertain to securities which are considered as exempt supplies under GST rules and therefore the related ITC is not eligible. Accordingly, the tax authorities have confirmed a total tax demand of Rs. 2,92,10,460 along with an equal penalty of Rs. 2,92,10,460. Therefore, the total financial liability under the order stands at Rs. 5,84,20,920 excluding the applicable interest. The order covers multiple financial years. The department has sought tax of Rs. 2,84,97,628 along with penalty of equal amount for FY 2021-22 to FY 2023-24. For FY 2024-25, an additional tax demand of Rs.7,12,832 and a matching penalty have been imposed. The company received the order on June 22, 2026 and is considering the implications. Manoj Vaibhav Gems 'N' Jewellers said it will file an appeal before the ADC Appeals, Central Tax, Guntur within the stipulated timeline.

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The company also clarified that the order does not affect the company’s business operations and normal operations continue without any disruption.