Cummins India Limited has disclosed that the Additional Commissioner of CGST, Pune-II Commissionerate has levied tax demands and penalties totaling Rs 623.13 million each, citing alleged GST violations across FY 2019-20 to FY 2021-22. The company plans to appeal against both orders.
Cummins India Limited has informed stock exchanges about two separate GST-related orders. While the demands are significant in monetary terms, the company clarified that these penalties will not materially impact its financials or operations.
Tax Demand For Credit Note Adjustments
Authorities alleged that Cummins reduced its output GST liability by issuing credit notes to customers without ensuring reversal of input tax credit. This resulted in a demand of Rs 437.97 million and an equal penalty under Section 74 of the CGST Act.
Tax Demand For Wrong Classification
The second order pertains to alleged misclassification of goods sold, leading to short payment of GST. Authorities raised a demand of Rs 185.15 million and an equal penalty under Sections 50 and 74 of the CGST Act.
Key Highlights
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Company received two separate GST orders
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Total tax demand: Rs 623.13 million
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Equal penalty imposed: Rs 623.13 million
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Orders cover FY 2019-20 to FY 2021-22
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Company will appeal both orders
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No material impact on financials or operations
Sources: Cummins India Limited regulatory filing, BSE disclosure