Balkrishna Industries Limited (BKT) has been served an adjudication order for the fiscal years spanning 2021-22 through 2023-24 by the Additional Commissioner of CGST & Central Excise. The order confirms a tax demand of ₹4.80 Crores plus an equivalent penalty, related to inadmissible input tax credit and reverse charge mechanism issues. The company has stated this order is appealable and is preparing to contest the matter at the higher appellate level, confirming no immediate financial or operational impact.
Receipt of Adjudication Order
Balkrishna Industries Limited has officially informed exchanges regarding the receipt of an adjudication order. The intimation was received via email on March 30, 2026, at 5:48 p.m. (IST). The order was issued by the Additional Commissioner of CGST & Central Excise, Mumbai Central Commissionerate.
Details of the Tax Demand
The action taken involved the issuance of an adjudication order under Section 74(1) of the CGST/MGST Act, 2017, read with Section 11 of the Compensation Cess Act, 2017. The order covers the financial years from 2021-22 to 2023-24. The authority confirmed a demand of ₹4.80 Crores, accompanied by an equivalent penalty. This liability is confirmed on account of the alleged availment of inadmissible input tax credit and the non-payment of tax under the reverse charge mechanism.
Impact and Next Steps
BKT has clearly stated that the alleged tax demand will have no impact on the financial, operational, or other activities of the company. The company explicitly noted that the Order is Appealable. BKT is currently in the process of contesting this decision at the higher Appellate level.
Source: BSE
