Eicher Motors Faces ₹168 Cr GST Demand Notice on VECV
VECV has 30 days to respond and is currently reviewing the notice, which the company believes is not valid and unlikely to impact its business.
VECV has 30 days to respond and is currently reviewing the notice, which the company believes is not valid and unlikely to impact its business.Eicher Motors has informed the stock exchanges that its subsidiary, VE Commercial Vehicles (VECV), has received a Goods andService Tax (GST) demand-cum-show cause notice worth ₹168.19 crore from the Central Goods and Service Tax (CGST) and Central Excise Commissionerate in Ujjain, Madhya Pradesh. The notice, dated July 3, 2025, relates to alleged tax violations during the financial year 2017-18.
Tax Planning For Trusts and cooperation Societies click Here
According to the company, VECV has been asked to explain within 30 days why the GST amount, along with an equal penalty and interest, should not be recovered under Section 74(1) of the CGST Act and other relevant laws.
VECV, a joint venture between Eicher Motors and the Volvo Group, is currently reviewing the notice and plans to respond within the prescribed time. The company believes the demand is not valid and has stated that the matter will not have any material impact on its business or financials.
Tax Planning For Trusts and cooperation Societies click Here
Meanwhile, Eicher Motors posted mixed sales results for June 2025. Total sales of Eicher-branded trucks and buses dropped slightly year-on-year to 7,198 units, while domestic sales across all categories rose to 6,722 units. Exports from VECV increased to 476 units from 421 units in June 2024 as reported by Financial Express.
Shares of Eicher Motors closed 0.78% lower at ₹5,651.05 on the BSE as reported by CNBC.
Read More:Bajaj Consumer Care Receives₹27.23 Lakh GST Demand Notice for Credit Mismatch
Recently, Bajaj Consumer Care received a GST demand notice from the State Tax Office in Odisha for ₹27.23 lakh in tax and ₹2.72 lakh as penalty under Section 73 of the CGST Act. The demand is based on an alleged GST credit mismatch found during a review of the company’s filings.The company said the notice will not impact its financial or business operations and added that it plans to appeal the order before a higher authority.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
