Eicher Motors, a leading automobile company, has received tax demand orders from the Goods and Services Tax (GST) authorities totaling Rs. 12.8 crore. The demand includes both tax dues and penalties, and was raised due to mismatches in Input Tax Credit (ITC) claims and issues related to transitional credit. The demand was issued by three different GST offices: Jaipur, Lucknow, and Delhi.
The Jaipur office has demanded Rs. 0.62 crore, including a tax demand of Rs. 0.31 crore and a penalty of Rs. 0.31 crore, due to blocked credits claimed by the company between 2017-18 and 2021-22. The Lucknow office has demanded Rs. 6.64 crore, including a tax demand of Rs. 3.32 crore and a penalty of Rs. 3.32 crore, claiming that the company wrongly availed transitional credit in July 2017. The Delhi office has demanded Rs. 5.54 crore, including Rs. 2.73 crore in tax and Rs. 2.81 crore in penalties, due to discrepancies in ITC claims and supplier data.
Eicher Motors has responded to the notices and stated that it believes the demands are not justified. The company is evaluating legal options and may file an appeal against the orders. If the company successfully proves that its ITC claims are correct, the demand may be reversed, but if the authorities uphold the order, Eicher Motors will have to pay the full amount, including penalties.
The company’s statement reads: “Based on our assessment, the demand is not maintainable. We are currently reviewing all options, including filing an appeal against the order.” The outcome of this dispute will have significant implications for Eicher Motors and may set a precedent for other companies facing similar issues with GST authorities.