Eicher Motors Limited , a leading automotive company, has disclosed that its subsidiary, VE Commercial Vehicles (VECV), has received a significant GST demand notice. The notice, issued by the Central Goods and Services Tax (CGST) office in Ujjain, amounts to ₹168.19 crore.

Details of the Demand Notice

According to the company's regulatory filing, VECV received a demand cum show cause notice on July 3, 2025, from the office of the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Ujjain, Madhya Pradesh. The notice alleges contraventions of the provisions of the CGST Act, 2017 pertaining to the financial year 2017-18.

Implications and Company's Response

The notice requires VECV to show cause before the Additional/Joint Commissioner, Ujjain CGST Commissionerate, within 30 days of receipt. The company is asked to explain why GST amounting to ₹168.19 crore, along with an equivalent amount of penalty and applicable interest, should not be demanded under Section 74(1) of the CGST Act, 2017.

Eicher Motors has stated that based on VECV's assessment, the demand is not maintainable. The company is currently evaluating the matter and plans to submit its reply within the prescribed time period. Importantly, Eicher Motors does not anticipate any significant impact on its financials, operations, or other activities as a result of this notice.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, specifically Regulation 30 of the Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. Eicher Motors emphasized its commitment to transparency by providing this information to the stock exchanges.

While the GST demand notice represents a substantial amount, Eicher Motors' confident stance and prompt disclosure demonstrate the company's proactive approach to addressing regulatory challenges. Stakeholders will likely be watching closely as VECV prepares its response to the tax authorities in the coming weeks.

Eicher Motors , a prominent player in the commercial vehicle (CV) sector, has reported its sales figures for June, showing a slight year-on-year decline. The company's performance fell short of market expectations, indicating potential challenges in the CV market.

June Sales Performance

Eicher Motors announced that it sold 7,363 commercial vehicles in June. This figure represents a marginal decrease from the 7,424 units sold in the same month last year. The year-on-year comparison reveals a slight contraction in sales volume:

The difference of 61 units translates to a decrease of approximately 0.82% compared to the previous year's performance.

Market Expectations vs. Actual Results

The reported sales figure of 7,363 units fell short of market expectations. Analysts had projected sales of around 7,800 units for the month, indicating a gap between anticipated and actual performance:

The shortfall of 437 units suggests that Eicher Motors faced some headwinds in the commercial vehicle market during June.

Implications for the CV Market

While a single month's data does not necessarily indicate a trend, the slight decline in Eicher Motors' CV sales may reflect broader market conditions. Factors such as economic indicators, fuel prices, and industry-specific challenges could be influencing the commercial vehicle sector.

Investors and industry observers will likely keep a close eye on Eicher Motors' performance in the coming months to determine whether this slight dip is a temporary fluctuation or part of a larger trend in the commercial vehicle market.

As the company navigates through these market dynamics, stakeholders will be keen to see how Eicher Motors adapts its strategies to maintain its position in the competitive CV sector.