CEAT Limited has disclosed receipt of an order from the GST State Tax Officer demanding INR 4.7 Crore for the Financial Year 2019-20. This demand relates to the alleged ineligible availment and utilization of input tax credit. An equal amount of INR 4.7 Crore has been demanded as a penalty, plus applicable interest. The company confirmed receiving the communication on March 30, 2026, and is exploring an appeal, believing there will be no material financial impact.
Disclosure of Tax Authority Order
CEAT Limited formally informed stock exchanges about an order received from the State Tax Officer, Group-VIII, Intelligence-II, Chennai, Tamil Nadu. The communication regarding this order was received on March 30, 2026.
Details of the Confirmed Demand
The GST State Tax Officer has confirmed a demand related to the Financial Year 2019-20. The details of the alleged contravention are as follows:
- Demand Amount (Tax): INR 4.7 Crore
- Penalty Imposed: An equal amount of INR 4.7 Crore
- Basis: Alleged availment and utilization of ineligible input tax credit.
- Interest: Applicable interest on the above amounts.
Potential Impact and Next Steps
The company stated that it is currently exploring the option of preferring an appeal against the order issued by the authority. Crucially, the management believes that, at this stage, there will be no material impact on the financials, operations, or other activities of CEAT Limited resulting from this specific order.
Source: BSE
