Ujaas Energy Limited, a renewable energy solutions provider based in Madhya Pradesh, India, has received a Show Cause Notice (SCN) from the Goods and Services Tax (GST) Department regarding tax liabilities for the financial years 2021-2022 and 2022-2023. The company, which was under Corporate Insolvency Resolution Process (CIRP) during this period, argues that the liabilities should not be enforceable.
Ujaas Energy Limited, a Madhya Pradesh-based company specializing in renewable energy solutions, has received a Show Cause Notice (SCN) from the Goods and Services Tax (GST) Department regarding tax liabilities for the financial years 2021-2022 and 2022-2023. The notice, issued on March 13, 2025, demands a total of ₹51.14 crore, including interest and penalties, for alleged tax shortfalls and miscalculations.
The GST Department claims that Ujaas Energy Limited underpaid or wrongly claimed input tax credits, leading to a demand of ₹14.75 crore for the financial year 2021-2022 and ₹36.39 crore for 2022-2023. The notice includes proposed penalties of ₹2.88 crore and ₹3.13 crore for the respective years.
Company Challenges GST Notice Citing Insolvency Process
Ujaas Energy Limited was under the Corporate Insolvency Resolution Process (CIRP) from September 17, 2020, until the National Company Law Tribunal (NCLT) Indore Bench approved its resolution plan on October 13, 2023. The company argues that, as per the NCLT ruling, any liabilities or claims not filed before the resolution plan’s approval are legally extinguished.
The company has raised objections to the GST notice, stating that the tax period in question falls within its insolvency period and should not be enforceable. It has submitted necessary documents to contest the demand and intends to take legal steps if required.
Potential Financial Impact and Next Steps
If upheld, the GST claim could significantly impact the company’s financial standing. However, Ujaas Energy Limited remains confident in its legal position and has assured stakeholders that it will provide updates on further developments. The company is exploring legal options to have the notice set aside.
This development highlights the complexities of tax compliance for companies undergoing insolvency proceedings in India. The outcome of this case could set a precedent for similar cases in the corporate sector.
