Kirloskar Oil Engines faces ₹5.9 crore GST tax demand
Kirloskar Oil Engines Limited received a Show Cause Notice dated May 19, 2026, from the GST authorities in Lucknow regarding an ITC mismatch for FY 2022-23. The notice demands a tax of ₹5,90,02,030 along with a penalty of ₹59,00,203. The company has stated that it does not expect any material impact on its operations and will file a reply within the stipulated time.
*this image is generated using AI for illustrative purposes only.
Kirloskar Oil Engines Limited has disclosed the receipt of a Show Cause Notice under Section 73 of the Uttar Pradesh Goods and Services Tax Act, 2017 and the Central Goods and Services Tax Act, 2017. The notice was issued by the Joint Commissioner Corporate Circle, Lucknow, Uttar Pradesh, on May 19, 2026.
Details of the Demand
The regulatory action follows an alleged Input Tax Credit (ITC) mismatch and other points identified for the financial year 2022-23. The authorities have specified the financial implications of the notice in the communication sent to the company.
| Particulars | Amount |
|---|---|
| Tax Demand | ₹5,90,02,030 |
| Penalty | ₹59,00,203 |
Company Response
In its filing, Kirloskar Oil Engines Limited addressed the potential consequences of the demand. The management stated that it does not anticipate any material impact on its financial health, operations, or other activities as a result of this notice.
The company further indicated that it is currently in the process of preparing and filing a necessary reply to the authorities. This response will be submitted within the prescribed timelines to address the points raised in the Show Cause Notice.
Historical Stock Returns for Kirloskar Oil Engines
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +4.52% | +10.22% | +15.01% | +59.43% | +110.89% | +670.85% |
If Kirloskar Oil Engines' reply is rejected by authorities, what escalation options does the company have and how could prolonged litigation affect its balance sheet?
How might recurring GST compliance issues across Indian manufacturers signal broader systemic challenges with ITC reconciliation under the current GST framework?
Could this Show Cause Notice trigger heightened scrutiny from tax authorities on Kirloskar Oil Engines' other financial years, potentially leading to additional demands?
17
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
