Eicher Motors' GST Demand Slashed Substantially on Appeal

Eicher Motors reported that a GST demand by Tamil Nadu tax authorities has been reduced from Rs 129.79 crore to Rs 26.97 crore after an appeal. The original demand included unpaid taxes and penalties. The company contests the revised amount and is considering further appeals, noting no expected financial impact.

Eicher Motors on Friday announced that a GST demand order issued by Tamil Nadu's tax authorities has been significantly reduced upon appeal, from Rs 129.79 crore to Rs 26.97 crore.

The original demand, issued by the Additional Commissioner of Chennai North Commissionerate on December 30, 2023, amounted to Rs 129.79 crore, which included a tax demand of Rs 117.99 crore and a penalty of Rs 11.79 crore.

According to a regulatory filing by Eicher Motors, the revised demand now stands at Rs 26.97 crore, comprising a tax demand of Rs 24.52 crore and a penalty of Rs 2.45 crore. This adjustment follows an appeal filed by the company concerning the non-reversal of input tax credit on returned materials for the fiscal year 2017-18.

Eicher Motors stated that based on its assessment, the revised demand is still not justifiable, and it is exploring options, including filing another appeal. The company emphasized that the revised demand is not expected to impact its financials, operations, or other activities.