Nuvoco Vistas Corporation Ltd's subsidiary, NU Vista Limited, has received a Rs 24.99 crore tax demand notice from the Odisha GST department for the 2022-23 fiscal year. The dispute involves calculations regarding raw material yield, Form 26AS reporting, and input tax credit claims. Management has termed the demand incorrect and plans to contest it legally, stating they do not anticipate a material financial impact on the company’s bottom line.
Nuvoco Vistas Subsidiary Hit with Rs 25 Crore Tax Demand Notice
The tax demand stands at Rs 24.99 crore plus interest and a 10% penalty. Management expects no major financial impact as they prepare to contest the allegations.
Reader Takeaway: The company claims the tax demand is based on incorrect calculations and will legally challenge the order.
What just happened
NU Vista Limited, a wholly owned subsidiary of Nuvoco Vistas Corporation Ltd, received a show cause notice on September 30, 2026, from the Assistant Commissioner, CT & GST Circle, Jajpur, Odisha. The demand relates to the 2022-23 financial year and totals Rs 24.99 crore, excluding interest and penalties.
Why this matters
The dispute highlights specific regulatory scrutiny regarding how the company accounts for raw material to finished product yields, the reconciliation of turnover with Form 26AS, and the validity of input tax credits claimed during the period. These are common areas of focus for GST audits in the manufacturing sector.
Management Response
Nuvoco Vistas management has firmly stated that the tax authorities' calculations are erroneous and do not align with existing legal provisions. The company is currently preparing a detailed reply and maintains that it holds sufficient documentation to support its original tax filings. Consequently, the firm believes this notice will not result in a significant financial liability.
What to track next
Investors should monitor future BSE filings for updates on the adjudication process. While management is confident, outcomes of such tax disputes in India can be subject to lengthy legal proceedings, and any changes in the company's assessment of the financial risk should be closely watched.