ZF Commercial Vehicle Control Systems India Limited has announced the receipt of a show cause notice from the Commissioner of GST & Central Excise, Audit-I Commissionerate, Chennai. The notice is related to an audit conducted under the CGST Act, 2017, and proposes a demand of INR 27,99,29,495. This demand primarily stems from issues concerning excess availment of Input Tax Credit (ITC) and ineligible ITC.
GST Audit and Show Cause Notice Issued
ZF Commercial Vehicle Control Systems India Limited has disclosed that it received a Show Cause Notice dated August 11, 2026, from the Office of the Commissioner of GST & Central Excise, Audit-I Commissionerate, Chennai. This communication was received via email on the same date.
Details of the Proposed Demand
The notice has been issued pursuant to an audit conducted under Section 65 of the CGST Act, 2017. It proposes a demand amounting to INR 27,99,29,495. The key reasons cited for this proposed demand include: excess availment of Input Tax Credit (ITC) as reflected in Table 8(D) of GSTR-9, availment of ineligible ITC, and excess availment of ITC on import compared to GSTR-2B, along with ineligible ITC on import due to time limitations.
Financial Impact and Company Response
The period under review for this communication spans from April 2020 to March 2024. The company has stated that there is no material impact expected on its financial operations or other activities as a result of this notice. However, the notice also proposes to levy a penalty under Section 74 of the CGST Act. ZF Commercial Vehicle Control Systems India Limited is currently in the process of preparing and filing a detailed response to the Show Cause Notice.
Source: BSE
