Eicher Motors on Friday announced that the GST demand order issued by the tax authority in Tamil Nadu was reduced to Rs 26.97 crore from the initial amount of Rs 129.79 crore following an appeal.
The original notice served to the company on December 30 last year included a tax demand of Rs 117.99 crore and a penalty of Rs 11.79 crore.
"As a result of the appeal filed by the company against the above GST demand order, the demand order is now revised from Rs 129.79 crore to an aggregate amount of Rs 26.97 crore, which include tax demand of Rs 24.52 crore and penalty of Rs 2.45 crore," Eicher Motors stated in a regulatory filing.
The issue relates to the company's failure to reverse the input tax credit on returned material instead of paying the output tax liability for the financial year 2017-18.
Eicher Motors believes that the revised demand is not sustainable based on their assessment. The company is currently exploring all available options, including the possibility of filing an appeal against the order. However, they do not anticipate any significant impact on their financial position, operations, or other activities.
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