Kirloskar Brothers CGST, IGST, and Tamil Nadu GST Order Received

Kirloskar Brothers Limited has received an order related to the CGST Act, 2017, IGST Act, 2017, and Tamil Nadu GST Act, 2017. The order, dated December 31, 2025, claims a tax demand of Rs. 5,29,49,187/-, along with a penalty of equal amount and applicable interest. The company is currently seeking legal advice regarding the order’s impact.

GST Order Details

Kirloskar Brothers Limited has received an order issued under the CGST Act, 2017, IGST Act, 2017 and Tamil Nadu GST Act, 2017. The company became aware of the order on January 2, 2026, after a search on the GST website (www.gst.gov.in).

Financial Implications

The order, dated December 31, 2025, demands tax of Rs. 5,29,49,187/- (Rupees Five Crore Twenty-Nine Lakh Forty-Nine Thousand One Hundred and Eighty-Seven Only). It also includes a penalty of an equal amount and applicable interest. This relates to business transactions undertaken by the Chennai Regional Office of the Company for the period FY 2018-19 to FY 2023-24.

Basis of Demand

The GST demand is based on the following:

  • Ineligible Input Tax Credit (ITC) on “cross-charge” invoices issued by Head Office (Pune) towards common services.
  • Non-reversal of ITC on shortage of raw materials (castings) based on interpretation of disclosures made in Form 3CD (FY 2018-19).
  • Short payment of GST due to non-inclusion of certain “income” heads in taxable turnover (2018-19 to 2023-24).
  • Invocation of Section 74 of the CGST Act, alleging suppression, along with interest and penalty.
  • Company’s Response

    Kirloskar Brothers is currently seeking legal advice on the potential impact of this order and will take necessary actions as advised. The company does not currently foresee any immediate or probable impact on its financial operation, or other activities.

    Source: BSE

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