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Kirloskar Brothers Limited (KBL) has been informed about an order dated December 31, 2025, issued by the Additional Commissioner, CGST and Central Excise, Chennai North Commissionerate. The order, received by the company on January 2, 2026, claims a tax demand of ₹5,29,49,187 (Rupees Five Crore Twenty-Nine Lakh Forty-Nine Thousand One Hundred and Eighty-Seven), an equal amount as penalty, and applicable interest.

This demand pertains to business transactions undertaken by KBL's Chennai Regional Office for the financial years 2018-19 to 2023-24. The alleged violations include ineligible Input Tax Credit (ITC) on cross-charge invoices, non-reversal of ITC on raw material shortages, short payment of GST due to non-inclusion of certain income heads, and invocation of Section 74 of the CGST Act alleging suppression.

The company is currently seeking legal advice on the probable impact of this order. At this juncture, KBL does not foresee any immediate or probable impact on its financial, operational, or other activities, nor any liability or its quantum. The exchanges will be informed of any further developments.