Kirloskar Oil Engines Limited Receives Order-In-Appeal, Reducing Tax Demand
Kirloskar Oil Engines Limited announced today, March 21, 2026, that it received an Order-In-Appeal concerning a goods and services tax matter. The order, issued by the Office of Joint Commissioner of State Tax in Pune, Maharashtra, was partially in favor of the company.The Order-In-Appeal resulted in a reduction of the original tax demand and associated interest. Specifically, the interest levied decreased from ₹1,10,43,912 to ₹1,09,68,308, while the tax demand was reduced from ₹1,28,33,572 to ₹1,25,05,603. The penalty amount of ₹25,13,471 remains unchanged.
The matter relates to a previous order dated February 12, 2025, FORM GST DRC - 07 under Section 73 (9) of the Maharashtra Goods & Services Tax Act, 2017, concerning a short payment of GST and Input Tax credit disallowance for fiscal year 2020-21.
According to the company, the resolution is not expected to have a material impact on its financial, operational, or other activities. Kirloskar Oil Engines Limited is in the process of filing a second appeal with the appropriate authority.
| Particulars | Description | |
|---|---|---|
| 1 | Name of the authority | Department of Goods and Service Tax Office of the Joint Commissioner of State Tax |
| 2 | Nature and details of the action(s) taken or order(s) passed; | Order for reduction in demand of: • Interest from ₹1,10,43,912 to ₹1,09,68,308 • Tax from ₹1,28,33,572 to ₹1,25,05,603 • No change in penalty amount of ₹25,13,471 |
| 3 | Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority; | 20th March 2026 |
| 4 | Details of the violation(s)/contravention(s) committed or alleged to be committed | For short payment of GST and Input Tax credit disallowance for FY 2020-21 |
| 5 | Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible | The Company does not foresee any material impact on its financial, operations or other activities and the Company is in process of filing second appeal before the appropriate authority within prescribed timelines |
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