Cummins India Gets Two GST Penalty Orders

Cummins India received two GST orders from Additional Commissioner CGST, Pune-II with combined tax and penalty exposure of ~₹124.6 crore.
Order 1 demands ₹43.8 crore tax and ₹43.8 crore penalty for alleged improper ITC reversal against credit notes for FY2019-20 to FY2021-22.
Order 2 demands ₹18.5 crore tax and ₹18.5 crore penalty for alleged wrong goods classification and short GST payment for the same period.
Company intends to appeal both orders and states the penalties will have no material financial or operational impact.