Apollo Tyres Faces ₹61.52 Lakh GST Demand over Ineligible ITC
Apollo Tyres has received a Rs. 61.52 lakh GST demand order from Tamil Nadu tax authorities over alleged ineligible input tax credit and plans to appeal

Apollo Tyres Limited has informed the stock exchanges that it has received a demand order from the Tamil Nadu Commercial Taxes Department under the Central Goods and Services Tax Act 2017.
The order relates to a dispute over the eligibility of input tax credit claimed by the company and includes both the GST amount and a consequential penalty. The total demand raised in the order is Rs. 61.52 lakh.
The company stated that it received the order on 12 August 2025 from the office of the Deputy Commissioner (Commercial Taxes) in Tamil Nadu. The matter concerns claims of ineligible input tax credit and other related issues under the GST law.
Apollo Tyres has said it will challenge the order by filing an appeal before the Appellate Authority in due course. The company explained that the demand is not expected to have any material impact on its financial position, day to day operations, or other business activities.
This disclosure was made by Apollo Tyres to both the National Stock Exchange and the Bombay Stock Exchange on 13 August 2025, in line with the requirement for listed companies to inform investors about significant legal or regulatory developments.
Cases involving ineligible ITC claims are a common area of dispute between businesses and tax authorities under the GST regime, which came into effect in July 2017. Businesses are required to maintain proper documentation, ensure that suppliers have paid their GST dues, and meet other compliance conditions to validly claim ITC. Failure to meet these requirements can lead to demands for repayment of the credit claimed along with interest and penalties.
About Company
Apollo Tyres Limited is one of India’s largest tyre manufacturers, founded in 1972 and headquartered in Gurugram, Haryana. The company makes tyres for cars, trucks, buses, two-wheelers, and off-road vehicles, and sells them in India and many international markets. It is listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) and serves both original equipment manufacturers and the replacement market.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates