Shares of Eicher Motors Ltd fell 1% after touching a day’s high of Rs 5,683.50 on 11th July, following the company’s disclosure on 10th July that its material subsidiary, VE Commercial Vehicles Limited (VECV), had received a demand-cum-show cause notice from the Office of the Commissioner, CGST & Central Excise, Ujjain Commissionerate, Madhya Pradesh.

The notice, dated 3rd July, 2025, relates to alleged GST violations by VE Commercial Vehicles for the financial year 2017–18.

Eicher Motors, in a regulatory filing, said its subsidiary received the demand-cum-show cause notice under the CGST, MP GST, and IGST Acts from the CGST & Central Excise office in Ujjain, Madhya Pradesh.

As per the notice, VECV must explain within 30 days why GST of Rs 168.19 crore, along with a matching penalty and interest, should not be recovered under Section 74(1) of the CGST Act.

The company believes the demand is not valid and is evaluating the matter. It plans to respond within the deadline and doesn’t expect any major impact on its financials or operations.

At 1:19 PM, the shares of Eicher Motors were trading 0.83% lower at Rs 5,605 on NSE.

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