Vikran Engineering Hit With Rs 5.88 Crore GST Tax Demand

Tax Demand: Rs 5.34 crore | Total Liability including penalty: Rs 5.88 crore

Reader Takeaway: Company maintains no material operational impact, but GST discrepancies require monitoring until the formal resolution.

What just happened

Vikran Engineering Ltd has received a Demand Cum Show Cause Notice from the Office of the Additional Commissioner, CGST & CX, Patna-I. The notice relates to the fiscal year 2022-23 and carries a tax demand of Rs 5.34 crore, plus a penalty of Rs 53.45 lakh, totaling Rs 5.88 crore. The company received this order on September 22, 2026, under Section 73 of the CGST Act and related state and integrated tax laws.

Why this matters

The authorities have flagged three core areas of concern: discrepancies between GSTR-2A and GSTR-3B filings, non-payment of tax on a reverse charge mechanism (RCM) basis, and turnover differences involving TDS supplies. While the company claims no material impact on its financial or operational activities, such notices can lead to lengthy adjudication processes and potential cash outflows if the claims are upheld.

What changes now

Vikran Engineering is currently preparing its formal response to the tax authorities. The company intends to address each of the alleged violations through the official legal channel provided under GST norms. Shareholders should note that the company’s stance currently is one of non-materiality, suggesting management believes the notice is either contestable or fully recoverable under existing documentation.

Risks to watch

Investors should monitor future BSE filings for any escalation, specifically whether the tax demand is withdrawn or if the authorities issue a final adjudication order that requires payment. The outcome of the response and the company's ability to reconcile the stated discrepancies with the GST portal records will determine whether this results in a financial hit or a successful defense.