Eicher Motors runs into Rs 130-crore tax hurdle, stock slips 2%

In 2023, the company has given a return of 28 per cent on the bourses

Shares of Eicher Motors declined 1.5 percent to Rs 4,059 in early trade on January 1 after the company received demand orders from Chennai, Punjab and Jaipur worth Rs 130 crore.

At 9:23am, the counter was trading at Rs 4,062, down 1.9 percent from the previous close on the NSE. In 2023, the company has given a return of 28 percent on the bourses.

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According to an exchange filing, the officer has disallowed specific GST credits and raised a GST demand, primarily due to a disparity in GST credit matching between the company's GST availment and the information provided by suppliers in their GST returns.

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The company did not reverse the input tax credit on materials returned, instead opting for payment against the output tax liability.

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"Based on Eichers' assessment, the aforesaid demands are not maintainable and the company is evaluating all options including filing an appeal against the orders. The company did not envisage any relevant impact on financials, operations or other activities of Eicher Motors," it said.

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