JK Tyre & Industries Ltd received a Show Cause Notice (SCN) of ₹94.86 crore from the Goods and Services Tax (GST) authorities regarding discrepancies in filings for FY23.
The notice was issued by the Deputy Commissioner (ST) III, GST, Large Taxpayers Unit, Chennai-35, and uploaded to the GST portal on September 29, 2026. The company disclosed this development to stock exchanges on October 13, 2026, citing Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Breakdown of the Demand
The total demand raised under Section 73 of the GST Act, 2017 comprises tax, interest, and penalty components. The authorities identified various discrepancies during assessment proceedings, including incorrect classification of supplies under HSN/SAC codes, excess availment of Input Tax Credit (ITC), and mismatches between GSTR 2A and GSTR 3B returns.
| Component | Amount |
| Tax | ₹55.12 crore |
| Interest | ₹34.23 crore |
| Penalty | ₹5.51 crore |
| Total Demand | ₹94.86 crore |
Additional allegations included ineligible ITC claims and certain transactions treated as deemed supplies, such as recoveries from employees and reimbursements.
Company Response and Status
JK Tyre stated that it has a strong case and that there are no actual discrepancies as alleged in the notice. The company noted that the delay in disclosure was due to the time required to review the details of the SCN and its potential implications.
The company is currently examining the notice and plans to submit an adequate response to the GST Authority within the due time. Since the matter is yet to be adjudicated, the actual financial impact remains uncertain until a final order is passed. The disclosure clarifies that this is currently only a Show Cause Notice, with no penalty or restriction imposed at this stage.
Source from: https://scanx.trade/stock-market-news/companies/jk-tyre-receives-94-86-crore-gst-show-cause-notice-fy23/53442343
