JK Tyre & Industries Receives GST Show Cause Notice of Rs 94.86 Crore Over ITC and Tax Classification Issues:

JK Tyre & Industries Limited has informed the stock exchanges about the receipt of a show cause notice (SCN) dated September 29, 2026, passed by the Deputy Commissioner (ST) III, GST, Large Taxpayers Unit, Chennai-35.

According to the disclosure made by the company, the notice was uploaded on the GST portal on September 29, 2026. The said notice has alleged several discrepancies in the company's case during the GST assessment proceedings. These mismatches include incorrect classification of supplies under HSN/SAC codes, excess availment of input Tax Credit (ITC), mismatches between GSTR 2A vs 3B, ineligible ITC, and, additionally, certain transactions treated as deemed supplies, such as recoveries from employees and reimbursements, etc.

Consequently, the notice has proposed an aggregate demand amounting to Rs 94.86 crore on the company under Section 73 of the Goods and Services Tax (GST) Act, 2017. The demand includes a tax of Rs 55.12 crore, interest of Rs 34.23 crore, and a penalty of Rs 5.51 crore.

The company has a strong belief that the allegations proposed vide the notice are false, and no actual discrepancy exists in its case; hence, it is not satisfied with the notice, and since as of now the allegations proposed in the notice are yet not adjudicated, the company does not expect any financial impact (if any will be known after adjudication).

The company is presently in process to analyse/examine the notice, and upon analysis completion it will furnish a proper response to the notice within the prescribed time limit.

The company has made the aforementioned disclosure to the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE) vide an Intimation dated October 13, 2026, issued in pursuance to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.