GST Authorities Propose Rs 27.99 Crore Tax Demand on ZF Commercial Vehicle Control Systems:

ZF Commercial Vehicle Control Systems India Limited has received a show-cause notice from the GST and Central Excise authorities in Chennai, proposing a tax demand of around Rs 27.99 crore.

The company said the notice, dated August 11, 2026, was issued by the Additional Commissioner, GST & Central Excise, Audit-I Commissionerate, Chennai. The notice relates to the period from April 2020 to March 2024.

The company said the GST authorities have issued a show-cause notice proposing a tax demand of Rs 27.99 crore, following an audit conducted under Section 65 of the CGST Act, 2017.

The proposed demand is mainly related to the alleged excess availment of Input Tax Credit (ITC), as reported in the company’s GSTR-9 returns.

The authorities have also raised concerns over ineligible ITC claims, excess ITC claimed on imports compared with the figures reflected in GSTR-2B, and ITC claimed on imports beyond the permitted time limit.

The notice also proposes a penalty under Section 74 of the CGST Act.

ZF Commercial Vehicle Control Systems India said the notice does not have any material impact on its financial position, operations or other activities at this stage.

The company is currently preparing a detailed response to the show-cause notice and will take the necessary steps in the matter.