Vivekanand Cotspin LLP-linked firms face Rs 6.01 crore GST demand

M/s. Vivekanand Cotspin LLP-linked entities disclose nine goods and services tax (GST) matters, led by a Rs 6.0103394 crore demand against group company Ambica Cotseeds Limited. The February 3, 2025 order concerns July 2017 to March 2019 and states tax of Rs 3.0051697 crore and an equal penalty.

Why do Vivekanand Cotspin LLP-linked firms face a Rs 6.01 crore GST demand?

Vivekanand Cotspin LLP-linked firms face the largest stated GST demand because the Directorate General of GST Intelligence alleged omissions and contraventions of the Central Goods and Services Tax Act, 2017, the relevant State GST Act and Section 20 of the Integrated Goods and Services Tax Act, 2017. The matter against Ambica Cotseeds Limited began with a Form GST DRC-01 show-cause notice dated August 5, 2024, followed by a Form GST DRC-07 order dated February 3, 2025 for July 2017 to March 2019.

The Rs 6.0103394 crore stated liability comprises Rs 3.0051697 crore of tax and Rs 3.0051697 crore of penalty, with no separate interest component listed in that entry. Ambica Cotseeds Limited appealed the order, and the disclosure records a hearing-adjournment notice dated August 14, 2025; the proceeding remained pending for final conclusion. The amount is consequently a disputed demand under appeal rather than a disclosed settled liability.

Which GST allegations involve invoices and input tax credit?

The GST disclosures include allegations that Ambica Cotseeds Limited claimed input tax credit (ITC) using bills without actual receipt of goods or services. ITC is credit for eligible GST paid on purchases, which can be used against GST payable on supplies. A December 24, 2025 DRC-07 order for September 2018 to October 2018 created a Rs 16.94464 lakh liability, consisting of Rs 5.14636 lakh tax, Rs 6.65192 lakh interest and Rs 5.14636 lakh penalty.

Ambica Cotseeds Limited filed an appeal on March 24, 2026 against the Rs 16.94464 lakh order, which remained pending. A separate Section 74 proceeding covering April 2021 to March 2022 produced a larger Rs 69.47736 lakh demand through an April 5, 2024 DRC-07 order. That amount included Rs 28.35810 lakh each of tax and penalty, plus Rs 12.76116 lakh interest, and an appeal filed on June 22, 2024 remained pending.

The comparison shows the April 2021 to March 2022 invoice-only matter was more than four times the September to October 2018 liability. The source attributes both proceedings to claims based on bills without actual receipt of goods or services, but the later case had higher tax and matching penalty components. Both proceedings were made under Section 74, the GST provision cited in the disclosure for the show-cause notices and demand orders.

A third Ambica Cotseeds Limited matter concerns alleged excess ITC for April 2020 to March 2021 and April 2022 to March 2023. The December 9, 2024 DRC-07 order states a Rs 4.82136 lakh liability, split equally between Rs 2.41068 lakh tax and Rs 2.41068 lakh penalty; an April 24, 2025 appeal remained pending. A July 8, 2026 DRC-01A intimation for April 2020 to March 2021 separately states Rs 34.03622 lakh for excessive availment or utilisation of ITC, with a reply furnished and action by the tax officer pending.

What GST matters involve Vivekanand Industries?

Vivekanand Industries, a partnership firm of the promoters, has three disclosed GST matters across April 2020 to March 2024 and November 2023. The first resulted in a Rs 16.17718 lakh Section 74 demand for April 2020 to March 2021, made up of Rs 6.40680 lakh tax, Rs 3.36358 lakh interest and Rs 6.40680 lakh penalty. The taxpayer paid that amount to obtain release of conveyance and goods, then appealed the February 12, 2024 order on May 20, 2024.

Payment to release conveyance and goods did not conclude the first Vivekanand Industries proceeding because the appeal was submitted for further proceedings. The underlying allegation in that entry was ITC claimed through bills without actual receipt of goods or services. This procedure differs from the March 7, 2026 proceeding, which was still a show-cause notice and had not reached the DRC-07 order stage disclosed for the April 2020 to March 2021 matter.

The March 7, 2026 notice seeks Rs 56.61463 lakh for November 2023, alleging excess ITC claimed in GST GSTR-3B compared with GSTR-2B. GSTR-3B is the GST summary return used to report tax liabilities and ITC, while GSTR-2B is an auto-drafted ITC statement. The stated amount contains Rs 36.30556 lakh tax, Rs 14.70375 lakh interest and Rs 5.60532 lakh penalty; Vivekanand Industries furnished a reply and an order by the tax officer was pending.

A further Section 73 intimation dated September 9, 2026 states a Rs 66.36384 lakh liability for financial year 2022-23, while also describing the period as April 2022 to March 2024. The prospectus lists the taxpayer's reply as pending and does not provide a tax, interest and penalty break-up. That makes the Rs 66.36384 lakh figure a stated total liability at the intimation stage, not directly comparable by components with the Rs 56.61463 lakh notice.

How broad is the cluster of GST proceedings?

The indirect-tax list contains nine GST entries, comprising six matters involving Ambica Cotseeds Limited and three involving Vivekanand Industries. Ambica Cotseeds Limited accounts for the largest individual matter, the Rs 6.0103394 crore demand, as well as entries ranging from Rs 3.82680 lakh to Rs 69.47736 lakh. The largest demand alone is about seven times the next-largest listed amount, the Rs 69.47736 lakh April 2021 to March 2022 proceeding.

The six Ambica Cotseeds Limited entries cover periods from September 2018 to September 2025, with actions, replies and appeals extending to July 2026. One entry is distinct from the ITC allegations: a Rs 3.82680 lakh penalty for September 2025 relating to an e-way-bill mistake concerning the place of dispatch. An e-way bill is the GST movement document referenced in the disclosure, and Ambica Cotseeds Limited appealed that matter on November 28, 2025.

The source also reports tax-deducted-at-source, or TDS, outstanding amounts separately from GST. Ambica Cotseeds Limited had aggregate TDS outstanding of Rs 3.2776648 lakh through 2025-26, while Vivekanand Industries had Rs 1.22810 lakh. The GST entries involve notices, demand orders and appeals under the GST framework, whereas the TDS items are described as outstanding defaults for short payment, short deduction, interest and filing-related charges.

Conclusion

The disclosure shows a cluster of GST proceedings involving a group company and a promoter partnership firm associated with Vivekanand Cotspin LLP, rather than a single tax matter. Ambica Cotseeds Limited has the Rs 6.0103394 crore July 2017 to March 2019 demand under appeal, while Vivekanand Industries has a Rs 66.36384 lakh Section 73 intimation and a Rs 56.61463 lakh GSTR-3B versus GSTR-2B notice at earlier procedural stages.

What to watch next is the outcome of the disclosed appeals and tax-officer actions. The largest Ambica Cotseeds Limited matter remained pending after the August 14, 2025 hearing-adjournment notice, while Vivekanand Industries had replied to the March 7, 2026 notice and had a taxpayer response pending for the September 9, 2026 intimation. Those proceedings will determine whether the stated demands are upheld, changed or resolved.