Electric two-wheeler manufacturer Ather Energy Ltd. has received relief from the Goods and Services Tax (GST) authorities as the department has officially dropped all charges related to alleged discrepancies in inverted duty structure refunds.
The development has also led to a modest rise in the company’s share price.
The company was earlier served Show Cause Notices dated January 3, 2025, wherein the GST Department had raised demands amounting to INR 47.30 million for August 2021, INR 60.60 million for April 2022, and INR 121.40 million for April 2023. These demands pertained to refunds claimed under the inverted duty structure, which allows businesses to claim a refund when the tax rate on inputs is higher than that on outputs.
The details of this tax matter had also been disclosed by Ather in its Prospectus dated April 30, 2025, under the “Material Litigation” section, ahead of its public listing plans.
However, on June 14, 2025, Ather Energy informed both the National Stock Exchange of India (NSE) and BSE Limited that, upon reviewing the company’s explanation, the GST Department has decided to drop all three charges.
Ather Energy will not be required to pay the earlier demanded amounts totaling over INR 229 million. There will be no adverse financial impact on the company’s operations. The matter is now considered officially closed.
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