Cummins India faces Rs 62.3 crore tax demand and penalty from CGST Pune

Kinjal — Fri, 27 Mar 2026 13:46:54 +0000

Cummins India has been hit with a substantial tax demand and penalty by the Additional Commissioner of Central Goods and Services Tax (CGST), Pune-II Commissionerate. The company received two separate orders, each levying significant financial penalties for alleged tax discrepancies over the financial years 2019-20, 2020-21, and 2021-22.

The first order demands a tax payment of ₹43,79,73,947 along with an equivalent penalty amount under Section 74 of the Central Goods and Services Tax Act, in conjunction with Section 20 of the Integrated Goods and Services Tax 2017. This action is based on allegations that Cummins India reduced its output GST tax liability against credit notes issued to customers without ensuring the corresponding reversal of Input Tax Credit. Cummins India plans to appeal this decision with the appropriate authority.

The second order involves a tax demand of ₹18,51,57,200 and a matching penalty under Sections 50 and 74 of the Central Goods and Services Tax Act, also read with Section 20 of the Integrated Goods and Services Tax 2017. This order pertains to the alleged misclassification of goods sold and the consequent short payment of GST, which has resulted in a demand for differential tax for the disputed period. Cummins India intends to challenge this order as well.

Despite the hefty penalties, Cummins India has stated that these financial levies will not materially impact the company’s financials, nor will they affect its operational or other activities. The company received both orders on March 26, 2026, with the orders dated March 25, 2026.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

CGST Pune | Business Upturn

Cummins India faces Rs 62.3 crore tax demand and penalty from CGST Pune