Big Win for Ather Energy: Rs. 22.93 Crore GST Proceedings Dropped by GST Authorities

Ather Energy, a leading electric vehicle (EV) company, has received major relief in a tax-related case. The company announced that the GST department has dropped all proceedings related to a Rs. 22.93 crore tax demand. This decision comes from the Assistant Commissioner of State Tax in Chennai, Tamil Nadu.

The orders were received on June 13, 2025, and the company shared this update with the stock exchanges as required by SEBI (Securities and Exchange Board of India) regulations.

Earlier, Ather Energy had received three Show Cause Notices (SCNs) from the GST department. These notices claimed that Ather had wrongly claimed tax refunds under a rule called the inverted duty structure. This rule allows companies to get back the extra tax they paid on inputs (like parts and materials) when that tax is more than the tax they collect from customers.

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The three notices were for the following months and amounts:

• August 2021 – Rs. 6.06 crore
• April 2022 – Rs. 4.73 crore
• April 2023 – Rs. 12.14 crore

The GST department was questioning whether Ather had properly followed the rules while claiming refunds for these months.

After reviewing Ather’s case, the Assistant Commissioner of GST dropped all the cases. This means that:

• Ather no longer has to pay the Rs. 22.93 crore that was previously demanded.
• The tax department has officially closed the matter.

Ather Energy said in its official statement:

"Since the proceedings have been dropped, there will be no impact on our finances or business operations."

This statement was signed by Puja Aggarwal, the Company Secretary and Compliance Officer.

This is great news for Ather Energy, especially because the company recently got listed on the stock exchange. The tax notices were already mentioned in the company’s IPO prospectus under the section called “Material Litigation,” which lists any major legal issues.

Now that this case has been cleared, investors can feel more confident. It also shows that Ather follows tax laws properly and handles its compliance well.

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