Cummins India Limited has informed the Exchange about receipt of order from Additional Commissioner CGST, Pune-II Commissionerate (Authority).
CUMMINSIND · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Cummins India has received an order from the Additional Commissioner CGST, Pune-II Commissionerate, levying a tax demand of Rs. 52.56 crore and an equal penalty of Rs. 52.56 crore (totaling about Rs. 105.11 crore) under Section 74 of the CGST Act. The order relates to financial years 2019-20, 2020-21, and 2021-22 and covers alleged GST liability arising from the authority treating certain leave and license agreements as finance lease arrangements involving transfer of proprietary interest. The company has stated it will file an appeal with the appropriate authority. Despite the size of the demand, the company has clarified that the penalty has no material impact on its financials, operations, or other activities.
The order is sizeable on paper (~Rs. 105 crore combined) but the company says it is not material to its overall financial position and operations. The stock is unlikely to react strongly, though investors should watch the appeal outcome since an adverse final ruling could eventually become a real outflow.