SML Isuzu , a prominent player in the commercial vehicle sector, has reported a decline in its September sales figures while maintaining positive year-to-date growth. The company's latest disclosure to the stock exchanges provides insights into its performance across different vehicle categories.

September Sales Performance

SML Isuzu's total vehicle sales for September stood at 950 units, marking a 10% decrease from the 1,055 units sold in September of the previous year. The decline was observed across both major segments:

• Cargo Vehicles: Sales dropped by 9% to 370 units, compared to 407 units in the previous year.
• Passenger Vehicles: A more pronounced decline of 10% was seen, with sales falling to 580 units from 648 units in the same period last year.

Year-to-Date Growth

Despite the September setback, SML Isuzu's performance for the first half of the financial year (April-September) shows resilience:

• Total Sales: Reached 8,145 units, a 7% increase from 7,627 units in the same period last year.
• Cargo Vehicles: Demonstrated strong growth with a 29% increase to 2,422 units, up from 1,879 units.
• Passenger Vehicles: Remained relatively stable with 5,723 units sold, compared to 5,748 units in the previous year, showing a marginal growth of 0.4%.

Performance Overview

Upcoming Financial Results

In a separate announcement, SML Isuzu has informed that its Board of Directors is scheduled to meet on October 18 to consider and approve the unaudited financial results for the second quarter and half-year ending September 30. As per regulatory requirements, the company has also declared a closure of the trading window for designated persons from October 1 to October 21.

The contrasting monthly and year-to-date performances highlight the dynamic nature of the commercial vehicle market. While September sales indicate some challenges, the overall growth in the first half of the fiscal year, particularly in the cargo vehicle segment, suggests underlying strength in SML Isuzu's market position.

SML Isuzu Limited, a prominent commercial vehicle manufacturer, has recently received a mixed order from the Assistant Commissioner, Central Goods & Services Tax (CGST) Division-III, Chandigarh, regarding Goods and Services Tax (GST) demands. The order brings both relief and continued financial obligations for the company.

Waived Demand

The CGST authority has waived off a substantial portion of the total demand, amounting to Rs 1.72 crore. This waived amount comprises:

• Rs 1.56 crore in interest
• Rs 0.16 crore in penalties

This waiver applies to the period from July 2017 to March 2020, providing significant relief to SML Isuzu for its past tax liabilities.

Confirmed Demand

However, the order also confirmed a demand of Rs 0.70 crore for the period from April 2020 to March 2023. This confirmed amount includes:

• Rs 0.59 crore in interest
• Rs 0.11 crore in penalties

Nature of Violation

The GST demands stem from the company's alleged non-payment of Integrated Goods and Services Tax (IGST) under the reverse charge mechanism on certain services. This mechanism requires the recipient of goods or services to pay the tax directly to the government instead of the supplier collecting and paying it.

Company's Response

SML Isuzu has announced its intention to challenge the confirmed demand. The company plans to file an appeal against this portion of the order before the Goods and Services Tax Appellate Tribunal (GSTAT), the next adjudicating authority in the GST dispute resolution process.

Disclosure and Compliance

In compliance with regulatory requirements, SML Isuzu has promptly disclosed this development to the stock exchanges. The company received the intimation on September 19, 2025, at 11:40 hours via email, as per the LODR (Listing Obligations and Disclosure Requirements) filing.

This GST order follows a previous Order in Appeal dated September 20, 2024, which the company had communicated to the stock exchanges on September 26, 2024.

As the matter progresses through the appeal process, stakeholders will be keenly watching the outcome and its potential impact on SML Isuzu's financial position. The company's proactive approach in challenging the confirmed demand demonstrates its commitment to addressing tax matters and protecting its financial interests.