ZF Commercial Vehicle Control Systems India Wins GST Appeal as Rs 1.79 Crore ITC Demand and Penalty Set Aside:

ZF Commercial Vehicle Control Systems India Limited has won a favorable order from the Commissioner (Appeals) in quashing a GST demand of around Rs 1.79 crore pertaining to input tax credit (ITC) for FY 2020-21.

The company was earlier issued an order by the Commissioner of CGST & Central Excise, Jamshedpur for recovery of Rs 1,79,04,715 alleged excess, irregular or ineligible ITC and a penalty of Rs 17,90,472.

The difference was due to a mismatch between the ITC claimed by the company in its monthly GST returns and annual return. The company argued that the difference was due to reconciliation issues and submitted documentation to show that there was no excess ITC claim.

In the latest order, received by the company through email on October 1, 2026, the Commissioner (Appeals) allowed the company's appeal and cancelled the earlier demand and penalty. The appellate authority also dropped the proceedings initiated against the company in connection with the disputed ITC.

ZF Commercial Vehicle Control Systems India said the order will have no material impact on its financial position, operations or other activities. The company also stated that no penalty, restriction or other sanction remains against it in this matter.

ZF Commercial Vehicle Control Systems India Limited has won a favorable order from the Commissioner (Appeals) in quashing a GST demand of around Rs 1.79 crore pertaining to input tax credit (ITC) for FY 2020-21.

The company was earlier issued an order by the Commissioner of CGST & Central Excise, Jamshedpur for recovery of Rs 1,79,04,715 alleged excess, irregular or ineligible ITC and a penalty of Rs 17,90,472.

The difference was due to a mismatch between the ITC claimed by the company in its monthly GST returns and annual return. The company argued that the difference was due to reconciliation issues and submitted documentation to show that there was no excess ITC claim.

In the latest order, received by the company through email on October 1, 2026, the Commissioner (Appeals) allowed the company's appeal and cancelled the earlier demand and penalty. The appellate authority also dropped the proceedings initiated against the company in connection with the disputed ITC.

ZF Commercial Vehicle Control Systems India said the order will have no material impact on its financial position, operations or other activities. The company also stated that no penalty, restriction or other sanction remains against it in this matter.