Eicher Motors finds itself in a challenging situation as it discloses the receipt of demand notices totaling over Rs 130 crore from three different authorities related to GST issues, as per a recent regulatory filing.
According to the filing, the company has been issued a demand order amounting to Rs 129.79 crore, inclusive of a penalty of Rs 11.8 crore and applicable interest. The notice originates from the office of the Principal Commissioner of CGST and Central Excise, Chennai. Eicher Motors clarified that the demand is linked to the disallowance of certain GST credit and stems from a GST credit mismatch, primarily attributed to differences in the company’s GST availment and the information reported by suppliers in their GST returns.
The impact of this development is evident in the stock performance, with Eicher Motors shares trading 3.60% lower at ₹3,893.10 as of 11:19 am.
