CEAT gets GST demand, penalties of over INR 19 cr

Tyre maker CEAT Ltd on Wednesday said it has received GST demand and penalties totalling over INR 19 crore from tax authorities in Maharashtra and Vadodara. The Additional Commissioner, CGST & Central Excise, Vadodara has issued an order for an interest of INR 3.27 crore along with a penalty of INR 13.68 crore following a show cause notice (SCN) that was initially issued towards the delay in reflection of input tax credit to the credit ledger, caused due to technical issue of TRAN-1 return, CEAT Ltd said in a regulatory filing.

In another case, Deputy Commissioner of State Tax, Maharashtra has issued an order demanding INR 22 lakh and interest of INR 26 lakh, together with penalty of INR 2 lakh on following an SCN initially issued for reversal of input tax credit on non-payment of tax by suppliers.

“Interest of INR 1.59 crore is also levied towards the delay in reflection of Input Tax Credit to the credit ledger, caused due to technical issue of TRAN-1 return,” it added.

Currently, the company said it is actively analysing both the matters and taking appropriate steps against the orders.

As the matters are being pursued against the orders, CEAT said the final impact on its financial, operation or other activities may not be ascertainable as of now.

Source from: https://auto.economictimes.indiatimes.com/news/tyres/ceat-gets-gst-demand-penalties-of-over-inr-19-cr/106528724