CEAT GST demand reduced to Rs 6.4 crore for FY 2019-20
CEAT Limited received a revised GST order on June 3, 2026, lowering the tax demand for FY 2019-20 to Rs 6.4 crore plus interest, comprising Rs 3.2 crore tax and Rs 3.2 crore penalty. The company states there is no material impact and is considering an appeal against the order.

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CEAT Limited received a revised order from the GST State Tax Officer, Group-VIII, Intelligence-II Chennai-6, Tamil Nadu, on June 3, 2026, reducing the earlier tax demand. The confirmed demand now stands at Rs 6.4 crore plus interest, down from the previously communicated figure of Rs 9.4 crore. The reduction pertains to the financial year 2019–20 and addresses allegations regarding the availment and utilisation of ineligible input tax credit. The company stated that it believes there is no material impact on its financials, operations, or other activities, and is exploring the option of preferring an appeal against the order.
The disclosure was made to the exchanges pursuant to Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This communication serves as an update to the earlier intimation dated March 30, 2026, which had initially detailed the higher demand.
The revised order breaks down the confirmed demand into specific components. The rectified order (DRC-08) significantly lowered the financial implications compared to the initial assessment.
| Component | Amount |
|---|---|
| Tax | Rs 3.2 Crore |
| Penalty | Rs 3.2 Crore |
| Interest | Applicable |
The company management, represented by Company Secretary Gaurav Tongia, confirmed that the entity is evaluating legal recourse to contest the revised demand. The communication was officially signed and submitted on June 4, 2026.
Historical Stock Returns for CEAT
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.63% | -1.36% | -1.66% | -16.41% | -10.23% | +144.38% |
What is the likelihood of success for CEAT's planned appeal against the revised demand?
How will the legal costs associated with contesting the GST order compare to the potential financial relief?
Could this GST dispute trigger similar scrutiny or orders for other financial years?


































