Innovision Ltd has been issued a show cause notice by the Central GST department in Gurugram demanding Rs 10.70 crore. The notice pertains to disputed tax exemptions on toll collection services for the period between FY 2020-21 and FY 2024-25. The company stated that the demand is currently unadjudicated and plans to contest it by leveraging a recent favorable appellate order from Dehradun. No immediate material financial impact is expected at this stage.
Innovision Ltd Receives Rs 10.70 Crore GST Notice
Demand Amount: Rs 10.70 crore (CGST and SGST combined).
Dispute Period: FY 2020-21 to FY 2024-25 regarding toll collection services.
Reader Takeaway: Management expects no immediate financial impact, planning to contest using a favorable recent Dehradun appellate order.
What just happened
Innovision Ltd received a Show Cause Notice (SCN) from the Principal Commissioner of Central Goods and Services Tax, Gurugram, on August 25, 2026. The tax authorities are seeking a total recovery of Rs 10,70,41,228.15. This amount includes Rs 5.35 crore in CGST and Rs 5.35 crore in SGST, plus applicable interest and penalties. The dispute focuses on the company’s claim of tax exemptions on its toll collection services.
Why this matters
This regulatory notice represents a potential financial liability for the company. As it concerns a multi-year period from 2020 to 2025, any adverse ruling could impact profitability if the company is unable to sustain its position regarding toll service exemptions. However, the SCN is currently unadjudicated, meaning no payment is due until the tax authorities complete their final assessment.
What changes now
Innovision Ltd is preparing a formal response to the Gurugram Commissionerate. The company intends to rely on a favorable Order-in-Appeal dated August 11, 2026, from the Commissioner, CGST (Appeals), Dehradun. This previous order addressed similar transactions and set aside tax demands for the company’s Uttarakhand operations. Management believes this precedent strengthens their case for the current Gurugram notice.
Risks to watch
Regulatory disputes carry inherent uncertainty regarding final adjudications. While the management expresses confidence based on past legal outcomes, tax authorities in different jurisdictions may interpret regulations independently. Shareholders should track the timeline of this dispute and any further communications from the Gurugram GST office.