Eicher Motors Faces Major GST Demand Challenge

Eicher Motors' subsidiary, VE Commercial Vehicles, received a Rs 192.36 crore GST demand and penalty related to credit notes delay for FY 2017-18. A Show Cause Notice listed contraventions of the CGST Act, resulting in a confirmed demand of Rs 96.18 crore. VE Commercial Vehicles plans to appeal.

Eicher Motors Ltd announced on Tuesday that VE Commercial Vehicles Ltd, one of its subsidiaries, was slapped with a GST demand totaling Rs 192.36 crore. This demand, coupled with a penalty, is tied to a delay in reporting credit notes for the year 2017-18.

Earlier this year, VE Commercial Vehicles received a Show Cause Notice from CGST & Central Excise's Commissioner in Madhya Pradesh, citing alleged breaches of the CGST Act for the aforementioned financial year. The notice pegged the GST amount at Rs 168.19 crore, matched by an equivalent penalty, according to an official regulatory filing by Eicher Motors.

Following a response submitted by VECV, a final demand order was issued on December 29, 2025, confirming Rs 96.18 crore, significantly down from the initial figure. VE Commercial Vehicles asserts that they have grounds to appeal this order, indicating no impact on their financials or operations.

(With inputs from agencies.)