The Tamil Nadu Commercial Taxes Department has levied a demand order under the Central Goods and Services Tax Act, 2017, on Apollo Tyres Limited, the company informed the stock exchanges.
The issue is with the ITC claimed eligibility of the company and comprises both the GST amount and a consequential penalty. Rs. 61.52 lakh is the total demand raised in the order.
The company has obtained the order dated 12 August 2025 from the office of the Deputy Commissioner (Commercial Taxes) in Tamil Nadu. The case is pertinent to the claims of the ineligible ITC and the other pertinent issues under the GST law.
The company cited that, via an appeal filing before the appellate authority in due course, it will contest the order. Demand is not expected to have any material impact on its financial position, daily operations, or other business activities, the company added.
On 13 August 2025, Apollo Tyres announced important information to both the National Stock Exchange and the Bombay Stock Exchange. This disclosure aligns with regulations requiring listed companies to keep investors informed about significant legal or regulatory developments.
Read Also: How to Respond to a GST Notice for Dual Jurisdiction (SGST & CGST)
Cases that have ineligible ITC claims are a common area of dispute between businesses and tax authorities under the GST regime, which came into force in July 2017. Businesses must keep proper documentation, ensure that suppliers have paid their GST dues, and fulfil other compliance prerequisites to validly claim ITC. Demands for repayment of the credit claimed, along with interest and penalties, can be hit if unable to fulfil these requirements.
The Company
Apollo Tyres Limited, established in 1972 and based in Gurugram, Haryana, stands as one of the largest tyre manufacturers in India. The company produces a diverse range of tyres designed for various vehicles, including cars, trucks, buses, two-wheelers, and off-road vehicles.
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