The cut, amounting to over INR 100 crore, pertains to the non-reversal of input tax credit on returned materials in FY18, which the company had originally accounted for by paying output tax liability.
The original order included tax demand of INR 117.99 crore and penalty of INR 11.79 crore. This has now been revised to INR 24.52 crore and penalty of INR 2.45 crore, the company said in an exchange filing.
In December last year, the company had also informed that the officer has disallowed certain GST credit and raised GST demand, largely on account of the difference in GST credit mismatch between the company's GST availment and details reported by suppliers in their GST returns.
The turnover difference as declared in GSTR-3B with GSTR-1 return and non-reversal of input tax credit on material returned instead of output tax liability paid by the company, it added.
Eicher shares were trading at INR 4,725 at around 2 pm, down 4.75 from day's high.
The Delhi-headquartered company said that the revised demand is not maintainable and will be evaluating all options including filing an appeal against the order.
"Based on Company’s assessment, the aforesaid revised demand is not maintainable and the Company is evaluating all options including filing an appeal against the order. The Company did not envisage any relevant impact on financials, operations or other activities of the Company," Eicher Motors said.
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