Appellate Authority Upholds Original Order in Amara Raja Energy Tax Dispute
Amara Raja Energy & Mobility Limited, formerly known as Amara Raja Batteries Limited, has confirmed that an Appellate Authority has upheld an original order concerning a tax dispute under Section 107 of the CGST/APGST Act, 2017. The decision was communicated on July 31, 2026, following an examination by the Additional Commissioner, Office of the Commissioner of Central Tax & Customs (Appeals), Guntur.The order concerns violations related to input tax credit (ITC) and tax payments during the fiscal years 2018-19 to 2019-20. The core issues addressed in the decision included:
- Excessive ITC of Reverse Charge Mechanism (RCM) availed during the period spanning 2018-19 to 2019-20, compared to the tax paid under RCM reported in GSTR-3B returns.
- Availing ITC in the GSTR-9 return that exceeded the amount of ITC available in GSTR-2A for Fiscal Year (FY) 2018-19.
- Short payment of tax when comparing GSTR-1 and GSTR-9 returns for 2018-19.
The financial liabilities stemming from the original order, which has been upheld by the Appellate Authority, are detailed below:
| Financial Component | Amount (INR) |
|---|---|
| Tax Liability | Rs. 1,27,17,341/- |
| Penalty | Rs. 12,71,734/- |
| Interest | As per Section 50 of CGST Act, 2017 |
Amara Raja Energy & Mobility Limited stated that the disputed matter has no material impact on its financial or operational activities. The liability arising from the original order was already disclosed in the company's Financial Statements under 'Contingent Liability'.
The Company intends to file an appeal against this outcome before the GST Tribunal, which will be undertaken after payment of a pre-deposit.
ARE&M Stock Price Movement
Today, Amara Raja Energy & Mobility Limited's shares closed by edging higher to ₹910.45, having gained 0.24% in the trading session. The stock saw robust activity in the post-market as a total of 1.59 million shares were recorded as traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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