GST demand order received; penalty of INR 13,85,490 levied
The company has informed exchanges about a GST demand order received by email on October 22, 2026 from the Adjudication Branch (II), CGST & Central Excise, Manikbagh, Indore.
By ScoutQuest · · 1 min read
- Penalty Levied
- INR 13,85,490/-
- Order Received On
- October 22, 2026
- Audit Period Covered
- FY 2020-21 to 2023-24 (4 years)
What the communication is
The company has disclosed a communication received from the Adjudication Branch (II), CGST & Central Excise, Hqrs., Manikbagh, Indore - 452014. It is a GST demand order, received through email on October 22, 2026.
What the order is about
- Goods were supplied from the manufacturing plant at Hosur (TN) to a Madhya Pradesh (MP) warehouse.
- The applicable GST rate on the tractor parts supplied to customers was 28% and 28%/18% for agriculture customers.
- The authority has pointed to a disallowance of 10% of the excess Input Tax Credit (ITC) availed at the MP warehouse.
- The audit period covered is FY 2020-21 to 2023-24 (4 years).
What has been levied
The order levies a penalty of INR 13,85,490/-.
What the company says
- On financial impact, the company states: "There is no material impact on the financials, operations or other activities of the Company."
- On next steps, the company is in the process of update an appeal to GST Commissioner - Appeal (Indore).
How to read this
This is a tax-related order, not a business order. The company has quantified the penalty at INR 13,85,490/-, flagged no material impact, and is contesting it before the appellate authority. The outcome of that appeal is the next thing to watch.
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More numbers
- Penalty leviedINR 13,85,490/-
- GST rate on tractor parts supplied28%
- Disallowance of excess Input Tax Credit availed at MP warehouse10%
- GST audit period covered4 years
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