Eicher Motors Handed ₹130 Crore Tax Demand Notice

Eicher Motors has been served demand notices of around ₹130 crore from various authorities over issues related to Goods and Services Tax (GST), as per a regulatory filing by the company. Eicher Motors has received a demand order for ₹129.79 crore, including a penalty of nearly ₹11.8 crore and interest, from the Principal Commissioner of CGST and Central Excise’s office in Chennai. 

According to the regulatory filing, the CGST department in Chennai has disallowed certain GST credits and raised the GST demand due to the discrepancy in Eicher Motors’ GST availament and details provided by its suppliers. It also mentions the difference in turnover declared by Eicher Motors in form GSTR-3B and the GSTR-1 return. It also mentions that all of these issues pertain to the financial year 2017-18. 

The office of Excise and Taxation Officer cum State Tax Officer, Punjab, sent a demand order of approximately ₹70 lakh that includes a penalty of ₹3.2 lakh. This is also due to the turnover discrepancy declared in GSTR-3B, GSTR-1 and GSTR-9 in the financial year 2017-18. 

Furthermore, the Office of the CGST Commissionerate in Jaipur has sent a demand order of nearly ₹50 lakh with a penalty of ₹4.5 lakh and interest as applicable, the company said in the regulatory filing. Unlike the previous two demand orders, this demand order is due to the disallowance of the Credit Note issued for sales return between financial year 2017-18 to 2021-22. 

The regulatory filing also mentioned that “Based on the company’s assessment, the aforesaid demands are not maintainable and the company is evaluating all options including filing an appeal against the orders. The company did not envisage any relevant impact on financials, operations or other activities of the company.”