Cummins India Limited has informed stock exchanges about receiving two rectification orders from Income Tax authorities, with combined demands totaling ₹45.82 crores. The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Tax Demand Details

The company received two separate rectification orders from the Deputy Commissioner of Income Tax, Pune, under Section 155(18) of the Income-tax Act, 1961. The demands are structured as follows:

Nature of Tax Issues

Both rectification orders relate to Form 69 filed for withdrawal of claims of Secondary and Higher Education Cess. According to the company's evaluation, the demands have been raised due to certain errors apparent on the face of the record.

Key aspects of the orders include:

• Both orders issued under Section 155(18) of the Income-tax Act, 1961
• Related to withdrawal of Secondary and Higher Education Cess claims
• No violations identified in either order
• Demands attributed to apparent errors on record

Company's Response and Impact Assessment

Cummins India has stated that it is pursuing appropriate remedial actions with relevant authorities to resolve the issues, and expects the demands to be quashed. The company has provided a clear assessment of the financial impact:

Regulatory Compliance

The disclosure was made in compliance with multiple regulatory requirements, including Regulation 30 of Listing Regulations read with Clause 20 of Para A of Part A of Schedule III, and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

The company noted a delay in intimating the receipt of one order, explaining that the concerned team was analyzing the impact of the order. For the FY 2018-19 demand, no delay was reported. The information has also been uploaded on the company's website at www.cumminsindia.com for stakeholder access.

Cummins India Limited has now received three significant penalty orders from tax authorities, with the latest disclosure revealing additional GST-related demands and penalties totaling ₹105.11 crore. The company made its most recent disclosure on March 29, 2026, following receipt of a third order from the Additional Commissioner CGST, Pune-II Commissionerate, bringing the total penalty exposure to ₹229.73 crore.

Latest GST Penalty Order Details

The newest penalty order, dated and received on March 28, 2026, addresses a different type of alleged GST violation compared to the previous two orders. This third order focuses on lease and license agreement classifications during the same period of financial years 2019-20, 2020-21, and 2021-22.

Comprehensive Penalty Overview

With the addition of this third order, Cummins India now faces a total of three separate GST penalty orders from tax authorities, all covering violations during the financial years 2019-20, 2020-21, and 2021-22.

Nature of Alleged Violations

First Order - Input Tax Credit Issues: Alleged reduction of output GST tax liability against credit notes issued to customers without ensuring corresponding reversal of Input Tax Credit under Section 74 of the CGST Act.

Second Order - Goods Classification: Alleged wrong classification of goods sold and short payment of GST, leading to differential tax demands under Section 50 and 74 of the CGST Act.

Third Order - Lease Agreement Classification: The latest order alleges that the company incorrectly treated lease and license agreements as finance lease arrangements, amounting to transfer of proprietary interest in leased property under Section 74 of the CGST Act.

Company's Response Strategy

Cummins India has consistently indicated its intention to file appeals against all penalty orders with appropriate authorities. The company maintains that these orders will not materially impact its financial position or operational activities.

Regulatory Compliance and Transparency

All disclosures have been made in accordance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company continues to upload this information on its website at www.cumminsindia.com as part of its transparency obligations to stakeholders and regulatory compliance requirements.