Hero MotoCorp slapped with ₹17 crore GST notice
Hero MotoCorp, India's leading two-wheeler manufacturer, has received a tax demand notice exceeding ₹17 crore. The company disclosed this information in a regulatory filing today. The order, dated August 17, 2024, pertains to the disallowance of input tax credit for FY 2019-20, and was issued by the Office of the GST Officer under the Government of NCT of Delhi.
Breakdown of the tax demand
The tax demand notice served to Hero MotoCorp includes a tax amount of ₹9.38 crore. Additionally, it also comprises an interest component of ₹7.32 crore and a penalty summing up to ₹94 lakh. However, the two-wheeler giant has contested this demand as legally untenable based on its internal evaluation.
Hero MotoCorp's stance on the notice
Hero MotoCorp has argued that the input tax credit disallowed by the GST Officer of New Delhi was legitimately claimed under GST law provisions. The company attributes this disallowance to supplier non-compliance, which it asserts is not its responsibility. In response to this issue, Hero MotoCorp has stated its intention to take necessary measures including filing an appeal against the notice.
Impact on Hero MotoCorp's operations
Hero MotoCorp has assured that there will be no significant effect on its financials, operations, or other activities. This statement aims to alleviate any potential concerns among stakeholders about the company's stability in light of this development. The firm remains committed to addressing this issue through appropriate legal channels while continuing its business operations as usual.
