Cummins India Limited has informed the Exchange regarding receipt of order from Additional Commissioner CGST, Pune-II Commissionerate (Authority).
CUMMINSIND · price
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On the reaction day the stock moved 2.2 pts less than Nifty 100 and 0.3 pts less than its Compressors Pumps & Diesel Engines peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Cummins India has received two orders from the Additional Commissioner CGST, Pune-II Commissionerate dated March 25, 2026 (received March 26, 2026). The first order raises a tax demand of Rs. 43.80 crore and an equal penalty of Rs. 43.80 crore (total ~Rs. 87.60 crore) under Section 74 of the CGST Act for FY 2019-20 to 2021-22, alleging the company reduced its GST output liability using credit notes without reversing corresponding input tax credit. The second order demands Rs. 18.52 crore in tax and Rs. 18.52 crore in penalty (total ~Rs. 37.03 crore) under Sections 50 and 74 for the same period, alleging wrong classification of goods and short payment of GST. Combined, the two orders create a potential exposure of roughly Rs. 124.63 crore if upheld. The company has stated it will file appeals with the appropriate authority and that these orders do not have any material impact on its financials, operations, or other activities.
While the combined potential liability of ~Rs. 124.63 crore is sizeable, management has clarified it is not material to financials. The stock may see short-term negative sentiment on the news, but the matter is subject to appeal and the financial impact is being downplayed by the company.