JK Tyre & Industries Ltd has received an order from the tax authorities regarding a demand for the 2019-20 financial year. The order alleges the wrongful availment of Input Tax Credit (ITC), resulting in a tax demand of Rs. 69.37 lakh, along with an equivalent penalty and applicable interest. The company maintains that it has a strong case and intends to challenge the order before the appropriate appellate authority.
Details of the Tax Demand
On March 30, 2026, JK Tyre & Industries Ltd was served an ‘Order-in-Original’ by the Assistant Commissioner, Delhi South Commissionerate. The demand pertains to the period from April 2019 to March 2020. The total tax liability confirmed by the authority amounts to Rs. 69,36,972, accompanied by an equal penalty of Rs. 69,36,972 and additional interest charges.
Reasons for the Assessment
The authorities have cited specific discrepancies as the basis for this demand. The primary issues identified involve the utilization of Input Service Distributor (ISD) credit and observed mismatches in the Input Tax Credit (ITC) claims reported across various financial years within the company’s GSTR-9 and GSTR-9C filings.
Company’s Response and Future Outlook
Despite the order, management has expressed confidence in their legal and tax position. The company believes there are sufficient grounds to contest the findings and has announced its intention to file an appeal with the higher appellate authority. JK Tyre & Industries Ltd has clarified that it does not expect this development to result in a material financial impact on its operations.
Source: BSE
