GST order: tax demand of Rs.68,72,106/- plus interest and equal penalty for ITC

Craftsman Automation has received a GST order dated 30th September, 2026 under Section 74 of the CGST Act, 2017 for Financial Years 2021-22 & 2022-23.

Tue 6 Oct 2026

Tax demand

Rs.68,72,106/- plus applicable interest

Penalty

a penalty equivalent to the tax amount

Financial years covered

2021-22 & 2022-23

What the order says

• The Assistant Commissioner of Goods & Service Tax and Central Excise, Division-III, Jamshedpur passed an order dated 30th September, 2026 under Section 74 of the Central Goods and Services Tax Act, 2017.
• The order relates to Financial Years 2021-22 & 2022-23.
• It carries a tax demand of Rs.68,72,106/-, along with applicable interest and a penalty equivalent to the tax amount.
• The stated reason is purported excess availment of Input Tax Credit (ITC).
• The company received the order on 5th October, 2026.

How the company has responded

• In the covering letter, the company says it is currently evaluating the implications of the order and will take appropriate steps, including update an appeal, as may be considered necessary.
• In the annexure, the company states it believes the demand is not sustainable and intends to take appropriate legal recourse against the order.
• The company states that it does not foresee any material impact on its financial, operational or other activities due to the order.

What this means in simple terms

• An Input Tax Credit is the credit a business claims for GST paid on its purchases, which is set off against GST payable on its sales. This order relates to credit the tax authority says was availed in excess.
• The order is a demand raised by the tax authority. The company has said it may appeal and believes the demand is not sustainable; that is the company's stated position as set out in the update.
• Along with the tax demand of Rs.68,72,106/-, the order provides for applicable interest and a penalty equivalent to the tax amount, so the amount involved can exceed the tax figure alone if the demand were to stand.
• Against that, the company's own assessment, as stated in the update, is that no material impact on its financials, operations or other activities is foreseen.

Figures to note

• Tax demand: Rs.68,72,106/-
• Financial Years covered: 2021-22 & 2022-23
• Penalty: equivalent to the tax amount, plus applicable interest
• Date of order: 30th September, 2026; date of receipt: 5th October, 2026

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.