Amara Raja Energy & Mobility Limited (ARE&M) announced on June 17, 2025, the receipt of an order from the Joint Commissioner of State Tax (Appeals), Patiala, Punjab, on June 16, 2025 (order dated March 13, 2025). This order upholds a previous order from February 22, 2023, issued under Section 73 of the CGST/PGST Act, 2017. The key details of the demands are:
- Excess Input Tax Credit (ITC) availed and utilized in GSTR-3B over GSTR-2A, amounting to a tax demand of ₹1,80,981, penalty of ₹18,098, and interest of ₹1,57,885.
- Interest on short payment of Tax for the period July 2017, totaling ₹1,30,83,751.
- Issues concerning supply/exchange of goods covered under warranty period and non-reversal of GST, leading to a tax demand of ₹2,14,60,329, penalty of ₹21,46,033, and interest of ₹1,89,33,302.
- Non-levy of GST on permanent disposal of Business Asset, with a tax demand of ₹49,28,272, penalty of ₹4,92,827, and interest of ₹43,47,951.
- Penalty of ₹20,000 under Section 122 of PGST Act, 2017, for Non-Maintenance of Books.
- Penalty of ₹50,000 for Non-Issuance of Self Invoices for supplies made under Reverse Charge Mechanism (RCM).
The total demand from these orders is approximately ₹6.58 crore (₹6,58,19,429). The company stated that there is no material impact on its financial and operational activities. ARE&M also noted that the order is appealable, and they will assess their right to appeal. The company received the order on June 16, 2025, which was dispatched on June 6, 2025.