Kirloskar Oil Engines Limited has received a significant GST tax demand order from tax authorities, marking a regulatory development that requires disclosure under market regulations. The company informed stock exchanges about this matter through a formal communication dated March 21, 2026.

Tax Demand Details

The Department of Goods and Service Tax, Office of the Joint Commissioner of State Tax, Pune, Maharashtra, has issued an order imposing a total demand of ₹4.31 crores for the financial year 2019-20. The order was issued under Section 107(11) of the Maharashtra Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017.

Nature of Violation

The tax demand relates to GST Input Tax Credit (ITC) mismatch and ITC disallowance issues for FY 2019-20. The company received the Order-In-Appeal on March 20, 2026, which formed the basis for the regulatory disclosure to stock exchanges.

Company's Response and Impact Assessment

Kirloskar Oil Engines has stated that it does not foresee any material impact on its financial, operations, or other activities due to this tax demand. The company is currently in the process of filing a second appeal before the appropriate authority within the prescribed timelines.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including amendments thereunder. Company Secretary and Compliance Officer Farah Irani signed the communication to both BSE and NSE on March 21, 2026.

The company has provided detailed information as required under Schedule III of SEBI regulations, ensuring transparency regarding the tax authority's action and its potential implications for stakeholders.

Kirloskar Oil Engines Limited has received a favorable Order-In-Appeal from the GST authorities, resulting in a significant reduction of tax demand and interest for the financial year 2020-21. The company disclosed this development under Regulation 30 of the SEBI Listing Regulations on 21st March 2026.

GST Order Details and Financial Impact

The Order-In-Appeal under Section 107(11) of the Maharashtra Goods and Services Tax Act, 2017 and Central Goods and Services Tax Act, 2017 was received on 20th March 2026 from the Office of Joint Commissioner of State Tax, Pune, Maharashtra. The order was passed partially in favor of the company, addressing issues related to short payment of GST and Input Tax credit disallowance for FY 2020-21.

Background and Regulatory Context

This favorable order comes in continuation to the company's earlier disclosure dated 13th February 2025. The original demand was raised through an Order dated 12th February 2025 in FORM GST DRC – 07 under Section 73(9) of the Maharashtra Goods & Services Tax Act, 2017. The demand pertained to alleged short payment of GST and disallowance of Input Tax credit for the financial year 2020-21.

Company's Assessment and Future Course

Kirloskar Oil Engines has stated that it does not foresee any material impact on its financial, operations or other activities due to this matter. The company is currently in the process of filing a second appeal before the appropriate authority within the prescribed timelines, indicating its intention to further contest the remaining demand.

Compliance and Disclosure

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, including amendments thereunder, and in accordance with Master Circular no. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January 2026. The information was signed by Farah Irani, Company Secretary and Compliance Officer, ensuring proper regulatory compliance.