JK Tyre has received a rectification order for the tax penalties imposed on the company by the various state government tax authorities. In an exchange filing, JK Tyre said on Wednesday that the authorities have revised the levied penalties to the extent of 10 per cent of the IGST, CGST and SGST amount.
JK Trye said that after the recification orders, the imposed penalty on the company has come down to Rs 1.61 crore in Karnataka, Rs 1.5 crore in Tamil Nadu, Rs 1.2 crore in Rajasthan, Rs 51.63 lakh in Uttar Pradesh, Rs 14.86 lakh in Haryana, Rs 18.92 lakh in Gujarat, and Rs 50.44 lakh in Madhya Pradesh. Further, the company has received similar revised penalties from other states as well.
JK Tyre first received the tax penalty order on September 4 when the company received a show cause notice, which raised a tax demand from 27 states. In the latest rectification order, the penalty on the company has been reduced to 10 per cent GST.
JK Tyre’s response
In the exchange filing, JK Tyre said that the company will contest the penalty ordered by the various state tax authorities. The company said that it has a strong case to defend the imposition of the penalty in line with the order recognising an industry-wide interpretational issue.
JK Tyre said that it will approach the appropriate authorities and appeal against the penalty orders passed.
JK Tyre share price
The JK Tyre share price has gained about 16 per cent in the last 1 month.
On Wednesday, JK Tyre’s stock closed at Rs 377.30, up 0.15 per cent.
Moreover, its Q1FY26 profit declined 26.8 per cent. The company’s profit came down to Rs 154.8 crore in Q1 FY26 from Rs 211.7 crore in Q1 FY25.