Cummins India Limited — Important, 27-02-2025: General Updates

Cummins India Limited has received a demand order totaling ₹1,50,06,996 and a penalty of ₹15,00,699 from the Office of the Assistant Commissioner of CGST and Central Excise - Pallavaram Division, Chennai Outer Commissionerate. This order relates to the alleged excess Input Tax Credit claimed for FY20-21 beyond what was reported in GSTR2B. The company plans to file an appeal against this order with the appropriate authority. Notably, management has indicated that this demand and penalty will not materially impact the company’s financials or operational activities. Investors should monitor this development closely, but the immediate implications appear manageable.