Eicher Motors subsidiary VE Commercial Vehicles receives ₹168 crore GST demand notice

Eicher Motors Limited on Thursday (July 10) has disclosed that its material subsidiary, VE Commercial Vehicles Limited (VECV), has received a demand cum show cause notice from the Office of the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Madhya Pradesh.The notice, dated July 3, 2025, pertains to alleged contraventions of the Central Goods and Services Tax Act, 2017, relating to the financial year 2017–18.

“We would like to inform you that VE Commercial Vehicles Limited has received a demand cum show cause notice from the office of the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Ujjain, Madhya Pradesh under the Central Goods and Services Tax Act, 2017 read with Madhya Pradesh Goods and Services Tax Act, 2017 and Integrated Goods and Services Tax Act, 2017,” Eicher Motors said in a regulatory filing.
Also Read: Eicher Motors shares slip over 5% after Q3 results miss, here’s why brokerages are dividedAccording to the show cause notice, VE Commercial Vehicles is required to explain within 30 days why the GST amounting to ₹168.19 crore, along with an equivalent penalty and applicable interest, should not be recovered under Section 74(1) of the CGST Act, 2017 and other relevant provisions.

VECV has stated that, based on its assessment, the demand is not maintainable. The company is currently evaluating the matter and intends to submit its response within the prescribed time frame. It does not expect any material impact on its financials, operations, or other business activities as a result of the notice.

Shares of Eicher Motors Ltd ended at ₹5,651.05, down by ₹44.65, or 0.78%, on the BSE.

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