Carraro India experiences a significant financial relief as the IGST tax demand of ₹6.37 crores has been reduced, according to a recent customs order dated May 7, 2026. This reduction diminishes their contingent liability by the equivalent amount.

Carraro India was recently issued a massive Rs. 21.8 billion tax demand by the Income Tax Department on April 8, 2026, due to alleged issues with transfer pricing and corporate tax. The company has announced its intentions to file an appeal against this decision.