Eicher Motors Limited has informed the Exchange regarding 'VE Commercial Vehicles Limited has received a demand cum show cause notice from the office of the Commissioner, CGST & Central Excise'.
EICHERMOT · price
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Eicher Motors' material subsidiary VE Commercial Vehicles Limited (VECV) received a demand cum show cause notice on July 3, 2025 from the CGST & Central Excise office in Ujjain, Madhya Pradesh. The notice alleges GST contraventions for financial year 2017-18 and proposes a demand of Rs. 168.19 crore in GST, along with an equivalent penalty and applicable interest, under Section 74(1) of the CGST Act, 2017. VECV has 30 days to respond to the Additional/Joint Commissioner, Ujjain CGST Commissionerate. VECV believes, based on its assessment, that the demand is not maintainable and will be filing its reply. The company has stated it does not foresee any material impact on its financials, operations, or other activities.
The Rs. 168.19 crore demand is significant but is only at the show cause stage with no adjudication yet. Eicher Motors believes there is no material impact, though investors should watch the outcome as a worst-case adverse ruling could materially affect the subsidiary's financials. Short-term stock impact is likely muted given the early stage of proceedings.