Shares of CEAT were trading in the red and almost 0.5% lower on 27 August despite the company winning an appeal against a Rs 107 crore GST demand, providing relief from a tax dispute involving the classification of tubes and flaps supplied along with tyres. 

The Commissioner (Appeals), CGST Thane Commissionerate, ruled in CEAT’s favour on August 26, 2026, and the company said the order has no impact on its financials or operations.

The dispute was related to the supply of tubes and flaps along with tyres. The tax authorities had raised a demand of around Rs 107 crore, with the matter involving the interpretation and classification of the bundled supply under GST provisions. 

The appellate authority treated the issue as an interpretational matter rather than one involving suppression or deliberate misstatement.

The ruling is particularly important because the authority found that proceedings initiated against CEAT under Section 74 of the Central Goods and Services Tax Act, 2017, were not sustainable. Section 74 generally deals with cases involving tax not paid or short-paid due to fraud, wilful misstatement or suppression of facts.

The favourable order removes the potential tax liability associated with the Rs 107 crore demand. However, CEAT said the development will not have any impact on its financial position, operations or other business activities, as the disputed amount had not been recognised as a liability in its financial statements.

The latest development adds to a series of regulatory and tax-related updates involving CEAT. In April 2026, the company also received relief in a separate Rs 276.7 crore excise duty dispute, with the authorities dropping the demand. CEAT had said that order too had no impact on its financials because the disputed amount had not been recognised as a liability.

The GST appeal therefore provides another positive development from a regulatory perspective. While it does not directly add to CEAT’s earnings or cash flow, the removal of a potential Rs 107 crore tax liability reduces uncertainty around the company’s outstanding tax disputes.

At 12:20 pm, the shares of CEAT were trading 0.53% lower at Rs 3,565.20 on NSE.

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