Schaeffler India Limited has been issued a GST demand order for ₹13,85,25,490/-. The order, received on October 22, 2026, pertains to a GST audit for FY 2020-21 to 2023-24. The disallowance relates to excess Input Tax Credit (ITC) availed at their Madhya Pradesh warehouse. The company has stated that there is no material impact on financials but is proceeding to file an appeal.
GST Demand Order Issued
Schaeffler India Limited has received a significant Goods and Services Tax (GST) demand order amounting to ₹13,85,25,490/-. This communication stems from a GST audit conducted for the period spanning the financial years 2020-21 through 2023-24. The company was notified of this order on October 22, 2026.
Audit Findings and Implications
The core of the demand order relates to goods supplied from Schaeffler’s manufacturing plant in Hosur, Tamil Nadu, to its Madhya Pradesh warehouse. The audit identified a disallowance concerning 10% excess Input Tax Credit (ITC) that was reportedly availed at the Madhya Pradesh warehouse. The communication also noted that materials supplied to agriculture customers attracted GST rates of either 28% or 18%.
Despite the substantial penalty, Schaeffler India has indicated that this situation is not expected to have a material impact on the company’s overall financials, operations, or other business activities.
Company’s Response and Next Steps
In response to the levied penalty, Schaeffler India Limited is actively pursuing legal recourse. The company is currently in the process of filing an appeal against the order with the GST Commissioner – Appeal (Indore). Further details regarding the appeal process or any other relevant information have not been specified.
Source: BSE
