According to an exchange filing by JK Tyre & Industries Ltd, the company has received a show-cause notice (SCN) from the GST department in Chennai, raising a demand of ₹94.86 crore for the financial year 2022-23. The notice was uploaded on the GST portal on September 29, 2026, and was issued by the Deputy Commissioner (ST) III, GST, Large Taxpayers Unit, Chennai-35. The company disclosed this development to stock exchanges on October 13, 2026, citing Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
As reported by the company, the total demand of ₹94.86 crore comprises tax of ₹55.12 crore, interest of ₹34.23 crore and a penalty of ₹5.51 crore. The notice relates to various alleged discrepancies identified during GST assessment proceedings, including incorrect classification of supplies under the Harmonised System of Nomenclature (HSN)/SAC codes, excess availment of input tax credit (ITC), mismatch between GSTR 2A and GSTR 3B, ineligible ITC, additional transactions treated as deemed supplies, and recoveries from employees and reimbursements.
According to the company's disclosure, JK Tyre believes it has a strong case against the observations raised in the show-cause notice and will submit its response, along with adequate supporting details, to the GST authority within the prescribed time. The company clarified that the allegations are yet to be adjudicated, and the actual outcome and financial impact will be known only after the proceedings are concluded. The company noted that there are no actual discrepancies as alleged in the notice and is currently examining the details. The delay in disclosure was attributed to the time required to review the SCN and its potential implications.
