Vivekanand Cotsipn GST demand of Rs 54.37482 lakh is stayed

M/s. Vivekanand Cotsipn Limited, formerly known as M/s. Vivekanand Cotsipn Private Limited, discloses that its predecessor, M/s. Vivekanand Cotspin LLP, has a Rs 54.37482 lakh goods and services tax demand under stay after an appeal filed on January 28, 2026. The LLP’s GST registration was cancelled by the department on the assessee’s application.

What is the Rs 54.37482 lakh GST case against Vivekanand Cotsipn?

The Rs 54.37482 lakh disputed liability concerns M/s. Vivekanand Cotspin LLP, which is identified in the disclosure with Gujarat GSTIN 24AAMFV9024F1Z1. Vivekanand Cotsipn lists the Superintendent, Jurisdiction Gandhidham, as the authority in proceedings under Section 74 of the GST Act, 2017.

The record identifies a show-cause notice in Form GST DRC-01, reference ZD2404251289490, dated April 30, 2025. It further identifies a demand order in Form GST DRC-07, reference ZD241125010688K, dated November 4, 2025. The table describes the sequence as a Section 74 notice followed by an order creating a demand under the GST Act, 2017.

Vivekanand Cotsipn reports total liability of Rs 54.37482 lakh but does not disclose a separate break-up between tax, interest and penalty for this LLP matter. That differs from two indirect-tax matters involving group company M/s. Ambica Cotseeds Limited, where the disclosure separately provides tax, interest and penalty amounts.

Why is the Vivekanand Cotsipn GST demand under stay?

The demand is under stay because M/s. Vivekanand Cotspin LLP filed appeal number AD2401260235497 with the Appellate Authority on January 28, 2026. Vivekanand Cotsipn states that the Rs 54.37482 lakh demand is under a stay order, while the underlying matter remains recorded as an amount in dispute.

The disclosure does not state that the November 4, 2025 demand order has been withdrawn, paid or set aside. It also does not provide a final appellate decision, hearing date, stay conditions or a proposed date for disposal. The reported status therefore depends on the appeal and stay order identified in the litigation table.

The same current-status entry says the department cancelled M/s. Vivekanand Cotspin LLP’s GST registration on the application of the assessee. Vivekanand Cotsipn does not disclose the cancellation date or the reason for the application. The registration cancellation and the stayed appeal are both recorded in the same entry, without a statement that either outcome resolves the other.

What other direct-tax matters does Vivekanand Cotsipn disclose?

Vivekanand Cotsipn reports tax deducted at source, or TDS, defaults through assessment year 2025-26 for both the LLP and the company. The Tax Information Network’s TRACES records show Rs 1.237695 lakh outstanding against M/s. Vivekanand Cotspin LLP from previous years through assessment year 2025-26.

The LLP’s disclosed TDS amount includes short payment, short deduction, interest on payment default, interest on deduction default, late-filing fees under Section 234E of the Income-tax Act, and interest under Section 220(2). Vivekanand Cotsipn separately reports Rs 1,608.41 outstanding against the company for short deduction and interest on deduction default under Section 201.

Vivekanand Cotsipn says the department had issued communication notices but had taken no recovery action on either TDS entry as of the disclosure. The filing says recovery notices may be issued, in which case the sums would become payable. Unlike the GST demand, the disclosure does not state that either TDS amount is under appeal or subject to a stay order.

Vivekanand Cotsipn also reports a pending faceless scrutiny assessment under the Income-tax Act, 1961. The company received an intimation under Section 144B, letter ITBA/AST/5/61/2026-27/1090000615(1), on June 20, 2026, and a scrutiny notice under Section 143(2), number ITBA/AST/5/143(2)/2026-27/1090022083(1), on the same date. The filing does not quantify a proposed tax demand from that pending scrutiny process.

How does Vivekanand Cotsipn decide which litigation to disclose?

Vivekanand Cotsipn’s board adopted its litigation materiality policy on April 20, 2026 under the Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations. The policy treats all criminal proceedings, statutory or regulatory actions and taxation matters involving the company and specified related parties as material for disclosure.

For other monetary cases, the policy uses the lowest of three measures: 2% of the latest annual restated standalone turnover, 2% of the latest annual restated standalone net worth, or 5% of the average absolute value of profit or loss after tax for the three latest annual restated standalone financial statements. Vivekanand Cotsipn says it used the third measure because it was the lowest threshold in its case.

The policy also covers non-quantifiable litigation, or litigation below the financial threshold, where an outcome could have a material adverse effect on business operations, performance, prospects, financial position or reputation. Notices from third parties, excluding statutory or regulatory authorities and notices threatening criminal action, are not evaluated until the relevant party is impleaded before a judicial forum.

Vivekanand Cotsipn states that there are no other pending cases involving the company under its materiality policy. The filing separately records no criminal litigation, no statutory or regulatory actions and no disciplinary actions against the company beyond the tax matters expressly disclosed on pages 274 and 275.

What distinguishes the LLP matter from the disclosed group-company GST cases?

The LLP case is the only indirect-tax case listed under litigation against Vivekanand Cotsipn, and its Rs 54.37482 lakh demand is stated to be under stay. By comparison, M/s. Ambica Cotseeds Limited has two Section 74 GST appeals pending before the Appellate Authority, with disclosed total liabilities of Rs 16.94464 lakh and Rs 69.47736 lakh.

For the first Ambica Cotseeds Limited matter, the disclosure lists tax of Rs 5.14636 lakh, interest of Rs 6.65192 lakh and penalty of Rs 5.14636 lakh, with an appeal filed on March 24, 2026. For the second, it lists tax of Rs 28.35810 lakh, interest of Rs 12.76116 lakh and penalty of Rs 28.35810 lakh, with an appeal filed on June 22, 2024.

The difference in disclosure is specific: Vivekanand Cotsipn provides an appeal number and says the LLP demand is under stay, but gives no tax-interest-penalty split. The group-company entries provide component amounts and state that appeals are pending for further proceedings, but do not state that either group-company demand is under stay.

Conclusion

Vivekanand Cotsipn’s disclosed position is that the Rs 54.37482 lakh Section 74 GST demand against M/s. Vivekanand Cotspin LLP remains disputed and under stay following the January 28, 2026 appeal. The LLP’s GST-registration cancellation, made on the assessee’s application, is separately reported and does not establish that the tax demand has reached a final outcome. The company also discloses Rs 1.237695 lakh of LLP TDS defaults, Rs 1,608.41 of company TDS defaults and a pending faceless scrutiny assessment.

The next disclosed development to watch is the Appellate Authority’s treatment of appeal number AD2401260235497 and any change in the stay order. Vivekanand Cotsipn’s June 20, 2026 scrutiny notices under Sections 144B and 143(2) are also unresolved, and the filing gives neither a proposed tax demand nor an expected completion date for that assessment.