The Office of Central Excise and Central Goods and Services Tax (CGST) has revised Eicher Motors GST demand from Rs 129.79 crore to Rs 26.97 crore
The Office Central Goods and Services Tax (CGST) and Central Excise has revised the GST demand orders for Eicher Motors on Friday. Following the automaker's appeal, the GST demands made on December 30, 2023, Rs 129.79 crore have been decreased to Rs 26.97 crore.
The tax demand of Rs 26.97 crore includes a penalty of Rs 2.45 crore. The penalty has also come down from Rs 11.79 crore earlier after a revision in tax demand.
The cut of Rs 100 crore is related to non-reversal of input tax credit on material returned instead of output tax liability paid by the company for FY18.
Despite the decreased tax demand, the automaker said the demand is not tenable and it is considering to appeal against the revised order.
"Based on the Company's assessment, the aforesaid revised demand is not maintainable and the Company is evaluating all options including filing an appeal against the order. The company did not envisage any relevant impact on financials, operations, or other activities of the Company," Eicher Motors said.
When the last notice was issued in December 2023, the company said there was contention between the authority and the automaker over the latter's GST availment and suppliers in their GST returns.
On Friday, the share price of the company nosedived more than 5 per cent to Rs 4,713 on the National Stock Exchange. The fall consequently came when sales of Royal Enfield motorcycles fell by 8 per cent from 73,117 to 67,265 units in July 2024.