Eicher Motors has received a demand cum show cause notice for Rs 168.19 crore GST from the CGST & Central Excise Commissioner of Ujjain, Madhya Pradesh. In an exchange filing, the company said that it received the notice from the tax authorities on July 3 and pertains to an alleged GST evasion in fiscal year 2017-18.
Further, the filing states that the said matter is related to Eicher Motors’s subsidiary VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors. Tax authorities have alleged that VE Commercial Vehicles breached the provisions of the GST Act 2017.
What Next?
As per the notice, the MP tax authorities have asked Eicher Motors to present before the Additional/Joint Commissioner GST, Ujjain, within 30 days and show cause why the GST amount of Rs 168.19 crore, along with the applicable interest, should not be demanded from the company.
Eicher Motor has maintained that the demand notice from the tax authorities of Ujjain is not valid. Further, the company said that it is evaluating the matter and will submit its case before the authorities within the stipulated time limit of 30 days.
Further, Eicher Motors says that it does not see a material impact of the demand cum show cause notice on its operations, financials and other related activities.
Eicher Motors business in June
Eicher Motors received mixed business results across the different categories of business. The company’s total Eicher brand truck and bus sales fell by 116 units in June on a year-on-year basis. The company sold a total of 7198 Eicher trucks and buses in June 2025.
However, its total domestic sales, across all categories, increased by 171 units in June against the same month in the previous year. The company sold 6722 vehicles in June. Exports from the Volvo Eicher subsidiary company also grew from 421 units in June 2024 to 476 units in June 2025.
Source from: https://www.financialexpress.com/business/industry-eicher-motors-gets-rs-168-crore-gst-demand-notice-3911144/
