Popular Vehicles subsidiary faces GST demand, penalty

Popular Vehicles and Services Limited announced today that its subsidiary, Prabal Motors Private Limited, received a demand order from the Assistant Commissioner, Coimbatore-IV Division. The order, dated December 17, 2025, alleges that Prabal Motors Private Limited claimed excess Input Tax Credit (ITC) of INR 1,00,83,198 for the financial year 2021-22.

The demand order includes the tax amount along with applicable interest and a penalty of INR 10,08,020. Popular Vehicles and Services Limited clarified there will be no financial impact on the company other than the tax amount, applicable interest, and the penalty. The company disclosed this information in compliance with SEBI regulations.