VECV Gets ₹192 Crore GST Demand; Eicher Motors to Challenge Order: Demand Linked to FY2017–18 Credit Note Reporting

Key Highlights

• VECV received a total GST demand of ₹192.36 crore.

• The issue relates to delayed credit note reporting for FY2017–18.

• The original GST demand was higher, later reduced by the authorities.

• The company plans to file an appeal within legal timelines.

• No impact expected on Eicher Motors’ business or finances.

Eicher Motors Ltd has informed that its subsidiary, VE Commercial Vehicles Ltd (VECV), has received a Goods and Services Tax (GST) demand of ₹192.36 crore, including penalty and interest. The issue is related to the delayed reporting of credit notes for the financial year 2017–18.

Show Cause Notice Issued in July 2025

According to a regulatory filing, VECV received a show cause notice (SCN) in July 2025 from the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Madhya Pradesh. The notice alleged violations under the CGST Act, 2017, and proposed a GST demand of ₹168.19 crore along with an equal amount as a penalty.

Final Demand Order Passed in December 2025

After reviewing VECV’s response to the SCN, the tax authority issued a final demand order on December 29, 2025. The order confirmed a reduced tax demand of ₹96.18 crore, along with an equivalent penalty and applicable interest, taking the total demand to ₹192.36 crore.

Company Plans to File Appeal

Eicher Motors stated that, based on its internal assessment and legal advice, VECV believes the demand order is without merit. The company plans to file an appeal before the appropriate authority within the prescribed time limits.

No Impact on Business Operations

The company clarified that the GST demand is not expected to have any impact on its financial position, day-to-day operations, or overall business activities.

Also Read: TVS Motor and Manba Finance Partner to Boost Commercial Vehicle Financing in India

CMV360 Says

Eicher Motors has clarified that the ₹192.36 crore GST demand raised on its subsidiary VECV is linked to an old credit note reporting issue from FY2017–18. After reviewing the order and taking legal advice, the company believes the demand is not valid and will challenge it legally. Importantly, Eicher Motors has assured stakeholders that the matter will not affect its financial health, operations, or business continuity.