JTEKT India received a notice from the Office of the Principal Commissioner in Gurugram directing the company to file an appeal with the Goods and Services Tax Appellate Tribunal (GSTAT). The notice follows the department's decision to challenge a demand order that was previously dropped by the Commissioner (Appeals).

The dispute centers on interest demanded on supplementary invoices issued for price escalations agreed with customers between July 2017 and March 2020. The GST department invoked Section 50(1) of the CGST Act read with Rule 88B of the CGST Rules, along with provisions of Section 74 of the CGST Act.

Details of the Demand and Penalty

The original demand order, which was set aside by the Commissioner (Appeals) on December 30, 2025, involved significant financial implications. The review committee of the department subsequently decided to file an appeal against this favorable ruling.

The notice was received via email on September 25, 2026, at 11:35 am. This action is in continuation of previous intimations made by the company on August 2, 2024, and January 29, 2026.

What the Numbers Show

The primary financial exposure highlighted in the notice is the penalty of ₹2.41 crore under Section 74(1), which relates to the period July 2017 to March 2020. While the interest amount on supplementary invoices is not explicitly quantified in the disclosure, the penalty figure represents a specific liability asserted by the authorities despite the initial relief granted by the Commissioner (Appeals). The company has stated it does not foresee any material impact on its financial or operational activities and is preparing a reply to the notice.

JTEKT India Limited held its 42nd Annual General Meeting on August 26, 2026, via video conferencing. Shareholders approved the re-appointment of key directors and authorized material related-party transactions.

The meeting, presided over by Chairman and Managing Director Minoru Sugisawa, concluded at 12:37 pm. The quorum was present with 242 members attending through video conferencing or other audio-visual means.

Governance and Director Appointments

Shareholders approved several ordinary and special resolutions regarding board composition:

• Re-appointment of Yosuke Fujiwara as Wholetime Director by rotation.
• Re-appointment of Minoru Sugisawa as Chairman and Managing Director.
• Re-appointment of Rajiv Chanana as Wholetime Director.
• Re-appointment of Masahiko Morimoto as Non-Executive Independent Director.
• Revision in remuneration for Yosuke Fujiwara.

Financials and Transactions

The audited financial statements for the year ended March 31, 2026, were adopted as an ordinary resolution. Statutory Auditor BSR & Co. LLP and Secretarial Auditor Krishna Kumar Singh issued unqualified opinions on the financial statements and matters bearing on the company's functioning.

Shareholders also approved:

• Declaration of dividend on equity shares for FY26.
• Increase in borrowing power under Section 180(1)(c) of the Companies Act, 2013.
• Material related-party transactions with Maruti Suzuki India Limited.
• Material related-party transactions with JTEKT Corporation.

The results of remote e-voting and e-voting conducted at the AGM will be announced within two working days.