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.

SML Isuzu , a prominent commercial vehicle manufacturer, has reported a significant decline in sales for August 2025, along with other key updates including a potential rebranding and recent financial performance.

August Sales Performance

According to the company's latest filing, SML Isuzu experienced a 15% year-on-year decline in total sales for August 2025. The company sold 815 units during the month, compared to 932 units in August 2024. This downturn was particularly pronounced in the export segment, which saw a sharp decrease:

Despite the sales decline, the company managed to increase its production from 974 units in August 2024 to 1,045 units in August 2025, representing a 7% rise.

Stock Performance and Corporate Developments

The market reacted negatively to these results, with SML Isuzu's shares closing at ₹3,699.00 on the National Stock Exchange (NSE), down 1.76%.

In a significant corporate development, SML Isuzu is preparing for a major rebranding initiative. The company plans to change its name to SML Mahindra Ltd, following approval from its board of directors. However, this rebranding is still pending final clearances from shareholders and regulatory authorities.

Ownership Changes

The rebranding comes in the wake of a significant shift in ownership structure. Mahindra & Mahindra (M&M) has acquired a majority stake from the previous promoters, Sumitomo and Isuzu, at a price of ₹650.00 per share. Following this acquisition, M&M has initiated an open offer to acquire an additional 26% stake at ₹1,554.60 per share.

Financial Performance

Despite the recent sales downturn, SML Isuzu reported strong financial results for the June quarter:

• Net Profit: ₹67.00 crore, up 44% year-on-year
• Revenue: ₹846.00 crore, a 13% increase
• EBITDA: ₹105.00 crore, improving by 15%

These figures indicate that while the company faces challenges in its sales volumes, it has managed to maintain profitability and improve its financial metrics.

As SML Isuzu navigates through these changes in ownership, branding, and market conditions, stakeholders will be closely watching how these developments impact the company's future performance and market position in the commercial vehicle sector.