Cummins India Faces Tax Demands and Penalties Totaling Over 62 Billion Rupees
Pune – Cummins India Limited announced it has received orders from the Additional Commissioner CGST, Pune-II Commissionerate, levying tax demands and penalties totaling Rs. 43,79,73,947 and Rs. 18,51,57,200 respectively. The combined penalty amount also equals Rs. 62.31 billion.The first order, dated March 25, 2026, concerns alleged discrepancies related to output GST tax liability and credit notes issued to customers for financial years 2019-20, 2020-21, and 2021-22. The tax demand and penalty are levied under Section 74 of the Central Goods and Services Tax Act read with Section 20 of the Integrated Goods and Services Tax 2017.
The second order, also dated March 25, 2026, relates to alleged incorrect classification of goods sold and a resulting short payment of GST, impacting the same financial years. This order imposes a tax demand and penalty under Section 50 and 74 of the Central Goods and Services Tax Act, read with Section 20 of the Integrated Goods and Services Tax 2017.
Cummins India Limited stated it intends to file an appeal with the appropriate authority regarding both orders. The company indicated that the levied penalties are not expected to have a material impact on its financial performance or operational activities.
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