Balkrishna Industries Receives Adjudication Order from CGST & Central Excise
Balkrishna Industries Ltd. (BKT) announced it received an adjudication order from the Additional Commissioner of CGST & Central Excise, Mumbai Central Commissionerate, on March 30, 2026. The order pertains to the financial years from 2021-22 to 2023-24.The adjudication order, issued under section 74(1) of the CGST / MGST Act, 2017, involves a demand for Rs. 4.80 Crs, along with applicable penalties, due to the alleged availment of inadmissible credit and non-payment of tax under the reverse charge mechanism.
According to BKT, the order has no anticipated impact on the company's financial, operational, or other activities. The company intends to contest the order through the appellate process.
| Sr. No. | Particulars | Information / Remarks |
|---|---|---|
| 1 | Name of the authority | Additional Commissioner of CGST& Central Excise, Mumbai Central Commissionerate |
| 2 | Nature and details of the action(s) taken or order(s) passed | Adjudication order issued u/s 74(1) of CGST /MGST Act, 2017 read with Section 11 of Compensation Cess Act, 2017. |
| 3 | Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority | March 30, 2026, at 05.48 PM. |
| 4 | Details of the violation(s)/ contravention(s) committed or alleged to be committed | The Company has received an adjudication order dated March 27, 2026, under section 74(1) of CGST / MGST Act, 2017, for the financial year from 2021-22 to 2023-24, wherein a demand has been confirmed for Rs. 4.80 Crs along with the equivalent penalty on account of availment of inadmissible credit and non-payment of tax under reverse charge mechanism. |
| 5 | Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible | There is no impact on the financial, operational or other activities of the Company due to the alleged tax demand. The Order is Appealable & the Company is in the process of contesting at the higher Appellate level. |
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