Schaeffler India faces ₹14 crore GST penalty from Indore authority

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Blacklitt Research27 October 20262 min read

Schaeffler India (NSE: SCHAEFFLER) received a GST demand order that levies a penalty of ₹13.85 crore, it said in a filing on 27 Oct 2026. The order, from the Adjudication Branch (II) at Indore, covers the FY 2020-21 to 2023-24 GST audit period and disallows 10% of excess input tax credit availed at the Madhya Pradesh warehouse.

Key highlights

Penalty levied: ₹13.85 crore
Excess input tax credit disallowed: 10%
GST audit period: FY 2020-21 to FY 2023-24 (four years)
Order received: 22 Oct 2026, by email

The GST order in numbers

Item	Detail
Issued by	Adjudication Branch (II), CGST & Central Excise, Hqrs, Manikbagh, Indore
Received	22 Oct 2026, through email
Penalty	₹13,85,25,490 (₹13.85 crore)
Input tax credit disallowed	10% of excess ITC availed at the MP warehouse
Audit period	FY 2020-21 to 2023-24 (four years)
Company's appeal	In process, to the Commissioner (Appeal), Indore
Company's view of financial impact	No material impact on financials, operations or other activities

What the authority found

The authority says goods were moved from the Hosur (TN) manufacturing plant to the Madhya Pradesh warehouse at a 28% GST rate. It also says tractor parts were supplied to customers at 28% or 18%, the lower rate applying to agriculture customers.

The order disallows 10% of the excess input tax credit availed at the Madhya Pradesh warehouse. The penalty is ₹13,85,25,490, which the filing gives in full rupees.

Company response and scope

The company says it is in the process of filing an appeal to the Commissioner (Appeal), GST, at Indore, and that the order has no material impact on its financials, operations or other activities.

In the quarter to 30 Jun 2026, Schaeffler India reported consolidated total income of ₹2,797.26 crore and net profit of ₹325.78 crore.

What the GST order means for Schaeffler India's shareholders

The order adds a penalty of ₹13.85 crore and a challenge the company has yet to file. The company says it has no material impact on its financials, but the filing does not say how the penalty will be accounted for or whether a provision has been made.

Not stated: the amount of any tax or interest beyond the penalty, the date the appeal will be filed, and the outcome of any appeal. The next step is the company's appeal to the Commissioner (Appeal) at Indore.

Reference: Original filing (PDF)

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