Hero MotoCorp Gets Rs 11.09 Lakh Penalty Order from UP State GST Department:

GST Authorities Issue Demand and Penalty Order to Hero MotoCorp, Company Says ITC Claim Valid
Hero MotoCorp Faces Tax Demand and Penalty for FY 2021-22

Hero MotoCorp Gets Rs 11.09 Lakh Penalty Order from UP State Tax Department
The Hero MotoCorp Limited, an Indian multinational company that primarily manufactures motorcycles and scooters, received a penalty order from the Deputy Commissioner, State Tax, Sector-20, Lucknow, Uttar Pradesh.
This disclosure was made by Hero MotoCorp Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Regulations”). Through which, the company was informed about the receipt of demand orders on December 8, 2025.
The company added that the order was passed by Deputy Commissioner, State Tax, Sector-20, Lucknow, Uttar Pradesh, under Section 73 of the Central Goods and Services Tax Act, 2017 (CSR Act) for the financial year 2021-22, levying a tax demand of Rs 11,099,508 and a penalty of Rs 1,109,949 along with applicable interest under Section 50 of the UP GST Act.
The company further added that the Deputy Commissioner has raised the tax demand, alleging excess claim of ITC on account of a mismatch of ITC as per GSTR-2A/2B and GSTR-3B and Incorrect claim of blocked ITC under section 17(5) of the CGST Act/UP GST Act. However, the company's ITC has been claimed correctly, and the tax demand is maintainable in law.
It added that there is no additional impact on financial, operational or other activities of the Company, and it will take appropriate steps to challenge the penalty order.
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Vanshika verma
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Vanshika Verma is a Content Writer with 1+ year of experience at Studycafe.in. A B.Com graduate from Delhi University, She writes articles on Finance, Tax, ICAI, GST, and the latest financial news, with a focus on making complex topics easy for readers and professionals.
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