Escorts Kubota Gets Major Relief as Tax Authority Drops Rs 46.79 Crore Tax Demand
Escorts Kubota Gets Major Relief as Tax Authority Drops Rs 46.79 Crore Tax Demand
Escorts Kubota Limited, an Indian multinational conglomerate, has received major relief from the GST department. As per the company’s regulatory filing dated March 27, 2026, the State Tax Officer, Tamil Nadu, has dropped a significant demand of Rs 46.79 crore along with interest and penalty related to the financial year 2019-20.
Background of the Case
The State Tax Officer, Chennai, had earlier sent a show cause notice dated May 07, 2025, to Escorts Kubota raising tax demands. The company challenged these demands by filing written objections before the STO, alleging incorrect classification of agricultural tractors as road tractors and incorrect calculation of the tax on the total GST turnover instead of only the turnover of tractors. As per the latest update, the tax demands have been dropped, giving major relief to the company.
Key Detail of Demand
| Particulars | Details |
| Tax Demand Dropped | Rs 46.79 Crore |
| Additional Components | Interest and penalty |
| Relevant Period | Financial Year 2019-20 |
| Authority | State Tax Officer, Mandaveli Assessment Circle, Chennai, Tamil Nadu |
| SCN Date | May 07, 2025 |
Company’s Disclosure Requirement
The above disclosure was made by Escorts Kubota Limited to both the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.