Cummins India Faces Rs. 62,31,31,147 Tax Demand & Penalty Over GST Discrepancies

Cummins India Ltd. has received orders from the Additional Commissioner CGST, Pune-II Commissionerate, imposing a tax demand of Rs. 43,79,73,947 and penalty of an equivalent amount under Section 74 of Central Goods and Services Tax Act read with Section 20 of Integrated Goods and Services Tax 2017. The demand is for allegedly reducing the output GST tax liability against Credit notes issued to Customers without ensuring corresponding reversal of Input Tax Credit. Additionally, a demand of Rs. 18,51,57,200 and penalty of an equivalent amount has been imposed for alleged wrong classification of the goods sold and short payment made for GST. The company will be filing appeals with the appropriate authorities against both orders. The orders were received on March 26, 2026, and relate to financial years 2019-20, 2020-21, and 2021-22.