CEAT Ltd, on 30 November, announced that it had received a demand notice for GST of Rs 1.98 crore, along with a penalty from the CGST, Central Excise, and Additional Commissioner.

The demand notice is against the disallowance of transitional credit and Trans2 credit under the applicable provisions of the CGST Act, 2017.

In its regulatory filing, the tyre maker said, “The company is in the process of analysing the matter and taking appropriate action for an appeal to be filed with the appellate authority.”

The tyre manufacturer further said that the demand notice impact on operation, financial, or any other activities of the company quantifiable in monetary terms to the extent possible is yet to be ascertained at this stage.