Cummins India Faces Tax Demand and Penalty of Over ₹100 Crore

Cummins India Faces Tax Demand and Penalty of Over ₹100 Crore​

Cummins India Limited has received an order from the Additional Commissioner CGST, Pune-II Commissionerate, levying a tax demand of ₹52,55,51,043 and a penalty of ₹52,55,76,043. The order pertains to financial years 2019-20, 2020-21, and 2021-22, and concerns the alleged treatment of leave and license agreements as finance lease arrangements, resulting in a GST liability.

The company plans to file an appeal against the order with the appropriate authority.

The penalty levied is not expected to have a material impact on the financial or operational activities of Cummins India.

The order was received on March 28, 2026.

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