ZF Commercial Vehicle faces significant tax demand over GST classification

ZF Commercial Vehicle Control Systems India Limited announced on December 19, 2025, that it has received an order from the Additional Commissioner, CGST & Central Excise, Ranchi. The order demands INR 39,83,65,328 plus applicable interest and an equivalent penalty amount of INR 39,83,65,328.

The total demand stems from an alleged incorrect classification of electronic control units for Anti-lock braking systems supplied by ZF Commercial Vehicle Control Systems India Limited, leading to differential Goods and Services Tax (GST).

The company clarified that it does not anticipate a material impact on its financial, operational, or other activities from this order. ZF Commercial Vehicle Control Systems India Limited plans to file an appeal against the order issued by the tax authorities.