JK Tyre Receives Rs 94.86 Crore GST Show-Cause Notice for FY23 Over ITC Claims, Tax Classification and Supply Disputes:

The GST authorities in Chennai have issued a show cause notice to JK Tyre & Industries Ltd for Rs 94.86 crore for the financial year 2022-23. The notice was uploaded on the GST portal on 29.09.2026 and was signed by the Deputy Commissioner (State Tax)-III, GST, Large Taxpayers Unit, Chennai.

The demand includes Rs 55.12 crore in tax, Rs 34.23 crore in interest and Rs 5.51 crore in penalty. According to the notice, the issues relate to the classification of supplies under HSN/SAC codes, excess claims of input tax credit (ITC), mismatches between GSTR-2A and GSTR-3B returns, and claims of ineligible ITC. The authorities have also questioned certain transactions treated as deemed supplies, including employee recoveries and reimbursements.

The company said there were no actual discrepancies as alleged in the notice. It added that the allegations were yet to be adjudicated, and the actual outcome and financial impact would be known only after the proceedings were completed.

JK Tyre said it was examining the notice and believed it had sufficient grounds to defend its position. The company added that it would submit an appropriate response to the GST authorities within the prescribed time and was assessing the notice and its possible implications.