NDR Auto Components Limited has received an order issued by the Additional Commissioner of Central Goods and Service Tax, Gurugram Commissionerate. The order was received on October 28, 2026.
The order pertains to an industry-wide dispute concerning the correct classification and rate of GST to be adopted on the supply of two-wheeler seats. The specific allegation is misclassification of goods (two-wheeler seats) under the wrong HSN code.
The order under Section 74 of the GST Act:
- Confirms a tax demand of ₹4.96 crores for the period from FY 2020-21 to FY 2023-24 (up to January 2024)
- Appropriates the amount of ₹4.96 crores that the company had already deposited under protest
- Imposes a penalty of ₹4.96 crores on the matter
- Imposes interest, as applicable
The company is in the process of filing an appeal against the order before the Commissioner of Central Goods and Service Tax, Appeals, Gurugram. Based on the company's own assessment and legal advice received, management is confident of a favorable outcome from the appeal.
The company states that no impact is envisaged on its financials, operations, or other activities due to this order.