ZF Commercial Vehicle Control Systems India, formerly known as WABCO India, has received a show-cause notice from the Additional Commissioner, GST & Central Excise, Audit-I Commissionerate, Chennai, proposing a demand of ₹27.99 crore.
The company received the notice dated August 11, 2026, via email, it said in a regulatory filing on Wednesday.
The notice follows an audit conducted under Section 65 of the Central Goods and Services Tax (CGST) Act, 2017, and primarily relates to alleged excess availment of input tax credit (ITC), the company said.
The proposed demand includes alleged excess ITC reflected in Table 8(D) of GSTR-9, availment of ineligible ITC, excess availment of ITC on imports compared with GSTR-2B, and ineligible ITC on imports on account of time limitation.
The matter pertains to the period from April 2020 to March 2024.
The GST authority has also proposed to levy a penalty under Section 74 of the CGST Act, according to the filing.
ZF Commercial Vehicle Control Systems India said the notice would have no material impact on its financials, operations or other activities.
The company is currently in the process of filing a detailed response to the show-cause notice, it said.
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.