JK Tyre & Industries has received a rectification order dated September 16, 2025, regarding penalties under the Central Goods and Services Tax (GST) Act. The order revises the initial penalties across multiple states. The company plans to contest the remaining penalty, believing it has a strong defense against the levy. The penalties relate to an industry-wide interpretational issue.
Rectification Order Received
JK Tyre & Industries received an order on September 16, 2025, from the Additional Commissioner, Chennai South Commissionerate. This order rectifies a previous order (dated September 3, 2025) regarding penalties under Section 73(9) of the Central Goods and Services Tax Act, 2017.
Impact of the Order
The rectification order involves penalties related to Integrated GST (IGST), Central GST (CGST), and State GST (SGST) across various states. The penalties are limited to 10% of the tax amounts involved. Here is a summary:
Lower Penalty Amounts:
The rectification order has resulted in a lower penalty across the 27 states involved.
Examples of Penalties:
- Tripura: ₹0.12 Lacs
- Goa: ₹0.57 Lacs
- Meghalaya: ₹1.02 Lacs
- Rajasthan: ₹120.55 Lacs
- Tamil Nadu: ₹157.51 Lacs
- Karnataka: ₹161.91 Lacs
Company’s Response
The company intends to contest the penalty based on Section 107 of the Central Goods and Services Tax Act, 2017. JK Tyre believes it has a strong case, aligning with the industry-wide interpretation of the issue. The company plans to file an appeal with the appropriate appellate authority to challenge the penalty.
Applicable Period
These penalties are applicable for the financial years 2017-18 and 2018-19.
Source: BSE
