as attached
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
VMS Industries Ltd has received a significant GST order confirming a total demand of ₹1,988.18 Lakhs (approximately 6.89% of turnover/net worth for FY 2024-25). The order, passed by the Joint Commissioner, Central GST, Bhavnagar, arose from a Show Cause Notice dated 12.08.2025. The investigation found the company engaged in circular trading with bogus invoices, where goods prices were artificially inflated up to 7-9 times between related parties without actual supply of goods. Physical inspections revealed stock shortages and no engines or machinery were found at premises despite high-value invoices. The company has availed and passed on Input Tax Credit (ITC) based on fake invoices. The company states it has adequate grounds to contest the demand and will file an appeal within the prescribed timeline.
This GST order confirming nearly ₹20 crore in tax and penalties for fraudulent circular trading and bogus invoicing represents a significant regulatory risk. While the company claims no material impact on operations, investors should monitor the appeal outcome as the allegations involve director-level involvement and systemic fraud patterns.