CEAT Ltd disclosed that it received GST demand and penalties exceeding INR 19 crore from tax authorities in Maharashtra and Vadodara. The Additional Commissioner in Vadodara imposed an interest charge of INR 3.27 crore and a penalty of INR 13.68 crore due to a delay in reflecting input tax credit caused by technical issues in the TRAN-1 return form. This arose from a show cause notice related to the credit ledger delay, as stated in the company’s regulatory filing.
Additionally, the Deputy Commissioner of State Tax in Maharashtra issued an order demanding INR 22 lakh, along with interest of INR 26 lakh and a penalty of INR 2 lakh. This directive stemmed from an initial show cause notice regarding the reversal of input tax credit due to suppliers’ non-payment of tax.
“An additional interest of INR 1.59 crore has been imposed due to the delay in reflecting Input Tax Credit in the credit ledger, attributed to technical issues with the TRAN-1 return,” the statement continued.
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The company stated that it is actively assessing both issues and implementing suitable actions in response to the directives.
CEAT highlighted that while they’re addressing these matters, the definitive impact on their finances, operations, or other activities remains uncertain for now.
