JK Tyre receives a GST show cause notice with a ₹94.86 crore demand for FY2022-23

JK Tyre & Industries Limited has told the exchanges that it received a Show Cause Notice (SCN) on 29 Sep 2026, uploaded on the GST portal by the Deputy Commissioner (ST) III, GST, Large Taxpayers Unit, Chennai. The notice covers FY2022-23 and follows assessment proceedings.

The notice raises a demand of ₹94.86 crore under Section 73 of the GST Act, 2017, made up of tax of ₹55.12 crore, interest of ₹34.23 crore and a penalty of ₹5.51 crore. The grounds listed include incorrect classification of supplies under HSN/SAC codes, excess availment of input tax credit (ITC), a mismatch between GSTR-2A and GSTR-3B, ineligible ITC, and certain transactions such as recoveries from employees and reimbursements being treated as deemed supplies.

The company says the allegations are yet to be adjudicated and that there are no actual discrepancies as alleged. It says it is examining the notice and will submit a defensible and adequate response to the GST authority within the due time.

Inference

A show cause notice is a step before a decision: the department has stated its case, and the company has the chance to reply. The ₹94.86 crore is a demand that has not been confirmed, so it is not yet a liability that has been decided.

The company states that the actual outcome and impact will be known only after the matter is adjudicated. Shareholders may want to follow later disclosures on the company's reply and any order, and on whether the company makes any provision in its accounts.