Bliss GVS Faces Tax Heat: ₹66.4 Million Refund Under Scrutiny by Authorities

Bliss GVS Pharma Ltd has landed in regulatory crosshairs after receiving a show cause notice from the Indian Tax Department regarding the recovery of ₹66.4 million in previously granted tax refunds. The notice, issued under provisions of the Goods and Services Tax (GST) Act, questions the legitimacy of the refund claimed by the company over multiple assessment periods.

 

According to regulatory disclosures, the tax authorities allege that Bliss GVS may have overstated input tax credits (ITC) or misclassified certain export transactions, leading to an excess refund. The company has been asked to furnish a detailed explanation and supporting documentation within the stipulated timeframe.

 

Key Highlights:

 

- Refund Under Dispute: ₹66.4 million in GST refunds claimed by Bliss GVS now under review.

- Nature of Allegation: Possible overstatement of ITC or procedural lapses in export documentation.

- Company Response: Bliss GVS has acknowledged the notice and is preparing a formal reply with legal counsel.

- Financial Impact: No immediate provisioning announced; company maintains the refund was claimed in good faith.

- Regulatory Trend: This follows a broader pattern of increased scrutiny on pharma exporters by GST authorities.

- Market Reaction: Shares of Bliss GVS Pharma remained largely stable, reflecting limited investor panic.

 

While the outcome remains uncertain, the company’s proactive stance and history of regulatory compliance may help mitigate long-term reputational or financial damage.

 

Sources: Economic Times, Business Standard, Bliss GVS Pharma regulatory filings