Voltas Share Price Surges Over 3% Despite Rs 265 Cr GST Notice- Why This Tata Stock Is Defying Gravity

The stock price of Tata Group's home appliances subsidiary, Voltas, surged as much as 3.44 per cent to hit an intra-day high of Rs 1,379.05 in trade on Thursday, July 3, 2025, despite receiving a show-cause notice of Rs 256.25 crore for the alleged short payment of goods and services tax (GST).

The company with a market capitalisation of Rs 45,392 crores has a show cause notice from office of Principal Comissioner, Central GST Commissionerate, Dehradun, placing allegations that Universal Comfort Products Limited (UCPL) made short payments of GST between the 2018-19 and 2020-21 financial years.

Voltas merged with UCPL—previously a wholly owned subsidiary—in the 2020-21 fiscal year. 

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“The show cause notice seeks an explanation as to why the tax amount of Rs 265.25 crores should not be demanded along with interest and penalty,” according to an BSE exchange filing.

The show cause notice to the firm came under “the Central Goods and Services Tax Act, 2017, read with the Uttarakhand Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017”.

Voltas received the notice on Tuesday, July 1, and is currently in the process of evaluating the matter.

On June 30, the company had received a show cause notice worth Rs 31.77 crore for alleged wrongful availment and utilisation of inadmissible or irregular input tax credit and non-payment of GST for the period between FY18 and FY21, Voltas informed in a separate filing.

The notice was received from the Office of the Commissioner, C.G.S.T. & Central Excise, Commissionerate Indore, Madhya Pradesh, under the Central Goods and Services Tax Act, 2017, read with the Madhya Pradesh Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017.

Over the last five trading days, Voltas shares have gained 4.2 per cent. For a month’s period, it has soared 11.27 per cent.

However, since January 3, 2025, which is six months, the stock has tumbled 24.5 per cent.

As of 3:01 pm, the shares of Voltas was trading 2.94 per cent higher at Rs 1,371.55.