CEAT receives notices levying GST demand, penalties over Rs 19 crore

4 Jan 2024 , 01:24 PM

CEAT Ltd, a tyre manufacturer, announced on Wednesday that it had received a GST demand and penalties totaling more than Rs 19 crore from tax officials in Maharashtra and Vadodara.

The Additional Commissioner, CGST & Central Excise, Vadodara, has issued an order for Rs 3.27 crore in interest and a penalty of Rs 13.68 crore in response to a show cause notice (SCN) issued in relation to the delay in reflecting input tax credit to the credit ledger caused by a technical issue with the TRAN-1 return, CEAT Ltd said in a regulatory filing.

In a separate instance, the Deputy Commissioner of State Tax in Maharashtra has issued a directive requiring a payment of Rs 22 lakh, along with an interest amounting to Rs 26 lakh, in addition to a penalty of Rs 2 lakh. This comes in response to a Show Cause Notice (SCN) initially issued for the reversal of input tax credit due to the non-payment of taxes by suppliers.

An interest of Rs 1.59 crore has been imposed for the delayed reflection of Input Tax Credit into the credit ledger, attributed to a technical issue in the TRAN-1 return, as stated in the document.

Currently, the corporation stated that it is actively investigating these issues and taking necessary action in response to the directives.

As the proceedings against the orders continue, CEAT stated that the final impact on its financial, operational, or other operations may not be known for some time.

At around 12.44 PM, CEAT was trading 0.11% lower at Rs 2,444.85 per piece, against the previous close of Rs 2,447.45 on NSE.

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