JTEKT India Ltd has disclosed that it has received a show cause notice from the Office of the Joint Commissioner of State Goods & Services Tax, Chennai, in relation to its erstwhile subsidiary JTEKT Sona Automotive India Ltd, which has since been amalgamated with the company.
The notice, dated September 25, 2025, pertains to the applicability of GST on expatriates under the reverse charge mechanism. The tax authority has raised a demand of Rs 3.63 crore in integrated GST (IGST) for FY20, along with penalty under Section 74(5) of the CGST Act, 2017, and interest under Section 50 of the Act.
The company said the notice will not have any impact on its financials, operations, or other activities, as it is in the process of filing a reply to the authorities.
| Particulars | Details |
|---|---|
| Name of the authority | Office of the Joint Commissioner of State Goods & Services Tax, Chennai |
| Nature and details of the action(s) taken | Applicability of GST on Expats under Reverse Charge Mechanism; Demand of IGST ₹3.63 Crore along with penalty and interest for FY 2019-20 |
| Date of receipt of direction or order | 25/09/2025 |
| Details of the violation(s) | Applicability of GST on Expats under Reverse Charge Mechanism under the GST regulation. |
| Impact on financial, operation or other activities | No impact as the company is in process to file the reply against the notice. |
Shares of JTEKT India were trading at Rs 168.20 on Friday, down 1.49 percent after moving between Rs 167.82 and Rs 171.57 during the session. Over the past year, the stock has declined 0.72 percent, having fluctuated between Rs 103.76 and Rs 188.50. The company’s market capitalisation stands at about Rs 46.74 billion, with a price-to-earnings ratio of 61.29 and a dividend yield of 0.42 percent.
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