Kirloskar Oil Engines has received an order under Section 73 of the Central Goods and Services Tax Act, 2017, resulting in a substantial reduction of tax demand, interest, and penalty. The order, dated December 9, 2025, pertains to an ITC mismatch for the financial year 2021-22. The company is assessing further actions and is in the process of filing an appeal before the appropriate authority.
Favorable Tax Order Received
Kirloskar Oil Engines announced that it has received a favorable order related to the Central Goods and Services Tax Act, 2017. The order, issued on December 9, 2025, significantly reduces the previously levied tax demand, interest, and penalties.
Details of the Order
The order addresses an ITC (Input Tax Credit) mismatch for the financial year 2021-22. The initial demand has been reduced as follows:
- Penalty reduced from ₹1,34,41,427 to ₹2,47,734.
- Interest reduced from ₹7,62,33,455 to ₹19,66,778.
- Tax reduced from ₹9,74,06,747 to ₹23,96,748.
Impact and Next Steps
The Company does not foresee any material impact on its financial, operations or other activities and the Company is in process of filing an appeal before the appropriate authority within prescribed timelines.
Source: BSE