Eicher Motors Subsidiary Receives Rs. 96.18 Cr GST Demand Order:

Eicher Motors Subsidiary has received a Rs. 96.18 crore GST demand order for FY 2017-18, which it plans to challenge, stating the order lacks merit.
Eicher Motors Faces GST Demand Order

Eicher Motors Subsidiary Receives Rs. 96.18 Cr GST Demand Order
Eicher Motors Limited, an Indian automotive giant known for making iconic Royal Enfield motorcycles. Its subsidiary VE Commercial Vehicles Limited received a GST demand order for Financial Years 2017-18 by the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Ujjain, Madhya Pradesh.
This disclosure was made by Eicher Motors Limited under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Regulations"). Through which, the company informed about the receipt of the demand order on December 29, 2025.
"On 10th July 2025, a disclosure was filed under Regulation 30 with respect to a show cause notice (SCN) received by VE Commercial Vehicles Limited from the office of the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Ujjain, Madhya Pradesh alleging contraventions of the provisions of CGST Act, 2017 pertaining to FY 2017-18 and involving GST amount of Rs. 168.19 Crores and equivalent amount of penalty.
VE Commercial Vehicles Limited submitted a response to the abovementioned SCN and post adjudication, VE Commercial Vehicles Limited on 29th December 2025 received a demand order confirming demand of Rs. 96.18 crores in the above matter (as against Rs. 168.19 Crores mentioned under the SCN) and equivalent amount of penalty and applicable interest from the office of the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Ujjain, Madhya Pradesh under the Central Goods and Services Tax Act, 2017 read with Madhya Pradesh Goods and Services Tax Act, 2017 and Integrated Goods and Services Tax Act, 2017, for delay in reporting the credit notes for the Financial Year 2017-18.
Based on the assessment of this matter & advice of the counsel, VE Commercial Vehicles Limited believes that the order has no merits and an appeal will be filed before the appropriate forum within the given timelines."
The company also said that it has received an order accusing it of breaking GST law rules (CGST Act, 2017) for the financial year 2017-18. The case involves a GST amount of Rs. 96.18 crore, and the authorities are asking for an equal amount as a penalty.
However, the company believes that the order has no facts and it will file an appeal before the appropriate forum within the given timelines.
The company further added that there is no impact on financial, operational or other activities of the Company.
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Vanshika verma
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Vanshika Verma is a Content Writer with 1+ year of experience at Studycafe.in. A B.Com graduate from Delhi University, She writes articles on Finance, Tax, ICAI, GST, and the latest financial news, with a focus on making complex topics easy for readers and professionals.
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