Eicher Motors Ltd has disclosed that it has received a demand-cum-show cause notice amounting to Rs. 168.19 crore from the Central Goods and Services Tax (CGST) and Central Excise Commissionerate, Ujjain. The notice, issued on July 3, 2025, pertains to alleged GST irregularities during the financial year 2017–18.
The matter relates to Eicher Motors’ subsidiary, VE Commercial Vehicles Ltd (VECV) — a joint venture between the Volvo Group and Eicher Motors. According to the tax department, VECV allegedly violated provisions of the Goods and Services Tax Act, 2017, triggering the demand notice.
As per the notice, Eicher Motors has been directed to appear before the Additional or Joint Commissioner of CGST, Ujjain, within 30 days and explain why the alleged tax liability, along with applicable interest, should not be recovered.
In response, Eicher Motors has stated that the notice is not legally tenable. The company confirmed it is actively reviewing the matter and intends to submit its representation before the authorities within the stipulated timeframe. The company also clarified that it does not anticipate any significant impact on its operations, financial standing, or related activities due to this development.
Eicher’s June Business Performance
Despite the tax proceedings, Eicher Motors reported a mixed performance for June 2025. Sales of Eicher brand trucks and buses declined by 116 units year-on-year, totaling 7,198 units sold last month. On the brighter side, domestic sales across all segments rose by 171 units, with 6,722 vehicles sold during June.
Export figures also reflected positive momentum. VECV’s overseas shipments climbed from 421 units in June 2024 to 476 units in June 2025, indicating continued global demand.
The company remains focused on addressing the legal notice while maintaining business continuity across its domestic and international operations.
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