Cummins India Faces Rs. 105 Crore Tax Demand and Penalty from Additional Commissioner CGST, Pune-II Commissionerate

Cummins India Ltd. has received an order from the Additional Commissioner CGST, Pune-II Commissionerate, imposing a tax demand of Rs. 52,55,51,043 and a penalty of an equal amount under Section 74 of the Central Goods and Services Tax Act for the financial years 2019-20, 2020-21, and 2021-22. The order alleges that the company has been treating leave and license agreements as finance lease arrangements, which has been interpreted as a transfer of proprietary interest in the leased property. The company intends to file an appeal with the appropriate authority. The penalty does not have a material impact on the company's financials or operations.