GST order confirms Rs. 4.96 crore demand and Rs. 4.96 crore penalty; company says demand already deposited, will appeal
GST order confirms Rs. 4.96 crore demand (FY 2020-21 to Jan 2024) on two-wheeler seat HSN classification, plus a Rs. 4.96 crore penalty and interest.
By ScoutQuest · · 2 min read
- GST Demand
- Rs. 4.96 crore
- Penalty
- Rs. 4.96 crore
- Demand Period
- FY 2020-21 to Jan 2024
What the company informed the exchanges
NDR Auto Components has received an order issued by the Additional Commissioner of Central Goods and Service Tax, Gurugram Commissionerate, received by the company on October 28, 2026. The order was passed under section 74 of the GST Act on account of misclassification of goods — two-wheeler seats — under the wrong HSN. The company describes the underlying issue as an industry-wide dispute over the correct classification and rate of GST on supply of two-wheeler seats.
The figures in the order
- The order confirmed a demand of Rs. 4.96 crores for the period from FY 2020-21 to FY 2023-24 (up to January 2024), and appropriated that amount against the confirmed demand.
- A penalty of Rs. 4.96 crores was imposed on the matter, along with interest as applicable.
- The company states that the demand amount has already been deposited under protest, and that it has been paying tax on this basis thereafter.
What the company plans to do
The company is in the process of update an appeal against the order before the Commissioner of Central Goods and Service Tax, Appeals, Gurugram. Based on its own assessment and on legal advice received, management says it is confident of a favourable outcome in the appeal. It therefore states that no impact is envisaged on the financials, operations or other activities of the company on account of the order.
How a reader can look at it
- The order is a tax authority's view on which HSN code and GST rate applied to two-wheeler seats; the company frames it as a classification dispute rather than an allegation of suppression of facts.
- The demand amount of Rs. 4.96 crores is stated to be already deposited under protest, which means cash has already gone out in earlier periods, subject to the outcome of the appeal.
- The penalty of Rs. 4.96 crores and applicable interest are stated in the order; the company's stated position is that it expects a favourable outcome in appeal and no financial impact.
- The final position will depend on the appellate authority's decision, so the matter carries a degree of uncertainty until the appeal is decided.
In one line
A GST order has confirmed a demand of Rs. 4.96 crores plus an equal penalty and interest on seat classification; the company says the demand is already paid under protest and is appealing, expecting no impact on its financials.
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More numbers
- Demand confirmed and appropriated by GST orderRs. 4.96 crores
- Penalty imposed by GST orderRs. 4.96 crores
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