Kirloskar Brothers Limited Receives GST Order with ₹5.29 Crore Tax Demand

1 min read Updated on 02 Jan 2026, 10:29 PM

Reviewed by

Jubin VScanX News Team

Overview

Kirloskar Brothers Limited disclosed receiving a GST order demanding ₹5.29 crores in tax with equal penalty for Chennai operations during FY2018-19 to FY2023-24. The order alleges violations including ineligible input tax credit claims and short GST payments. The company is seeking legal advice and has 90 days to respond.

*this image is generated using AI for illustrative purposes only.

Kirloskar Brothers Limited has informed stock exchanges about receiving a significant GST order demanding ₹5.29 crores in tax along with penalty and interest. The company disclosed this development under Regulation 30 of SEBI listing regulations on January 2, 2026.

GST Order Details

The order was issued on December 31, 2025, by the Additional Commissioner, Office of the Principal Commissioner of CGST and Central Excise, Chennai North Commissionerate. The company became aware of this order on January 2, 2026, after conducting a search on the GST website ( www.gst.gov.in ).

Parameter:	Details
Tax Demand:	₹5,29,49,187
Penalty:	Equal amount to tax demand
Period Covered:	FY 2018-19 to FY 2023-24
Regional Office:	Chennai
Response Timeline:	90 days from receipt

Alleged Violations

The GST demand stems from four specific allegations related to the Chennai Regional Office operations:

Ineligible Input Tax Credit (ITC): Claims on cross-charge invoices issued by Head Office (Pune) for common services
Non-reversal of ITC: Related to shortage of raw materials (castings) based on Form 3CD disclosures for FY 2018-19
Short payment of GST: Due to non-inclusion of certain income heads in taxable turnover from 2018-19 to 2023-24
Section 74 invocation: Alleging suppression under the CGST Act, leading to interest and penalty

Company Response

Kirloskar Brothers Limited has stated that it is currently seeking legal advice on the probable impact of this order. The company emphasized that it does not foresee any immediate or probable impact on its financial, operational, or other activities at this juncture.

Action Item:	Status
Legal Consultation:	In progress
Impact Assessment:	Under review
Exchange Updates:	Committed as needed
Response Timeline:	90 days available

The order provides the company with 90 days to either pay the alleged tax arrears, penalty, and interest, or file an appeal against the order. The company has committed to inform the stock exchanges of any developments regarding this matter as they unfold.

Historical Stock Returns for Kirloskar Brothers

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.07%	+1.25%	+2.19%	-29.54%	-28.33%	+1,081.88%

Kirloskar Brothers

View in Depth

Tax Notice Withdrawal

The company has confirmed that tax notices previously issued against its directors have been officially withdrawn by the relevant authorities. This development marks the resolution of what could have been a prolonged regulatory matter for the engineering company.

Legal Case Closure

Alongside the withdrawal of tax notices, the related legal cases have also been closed. This comprehensive resolution addresses both the administrative and judicial aspects of the matter, providing clarity on the company's regulatory standing.

Impact on Operations

The withdrawal of these notices and closure of legal cases removes potential uncertainties that may have been affecting the company's operations and governance. This resolution allows the management to focus on core business activities without the distraction of ongoing legal proceedings.

Conclusion

This development represents a positive outcome for Kirloskar Brothers, as it eliminates potential financial liabilities and reputational concerns associated with pending tax matters. The company can now proceed with its business operations with greater regulatory clarity.

Historical Stock Returns for Kirloskar Brothers