Hitachi Energy gets Rs.46.29 crore Tax Demand Notice over GST Audit for FY 2019-20

Hitachi Energy India Ltd stated that it received a tax demand totalling Rs.46.29 crore as a result of an audit performed by the Assistant Commissioner of Commercial Taxes (Audit) on Tuesday (September 3). The demand includes Rs. 24.41 crore in GST, Rs. 19.43 crore in interest, and Rs. 2.44 crore in penalties.

The audit, which covered the financial year 2019-2020, revealed alleged irregularities such as irregular input tax credit, non-payment of GST on external e-waybills, and misclassifying taxable supplies as zero-rated exports.

The tax demand is the result of many important flaws uncovered during the FY 2019-20 GST audit. The authorities discovered inconsistencies, including the suspected inappropriate use of input tax credit, notably in cases where payments were not made within the 180-day window allowed by the Karnataka GST Act, 2017.

Furthermore, the audit highlighted cases in which GST was allegedly not paid on external e-waybills and certain taxable supplies were wrongly designated as zero-rated exports without tax payment.

Another major concern noted during the audit was the alleged improper availment and use of input tax credit in transactions with ABB India Ltd, where items were allegedly not actually supplied. The audit also discovered inconsistencies in the classification of several transactions as non-GST supplies, which added to the overall tax burden.

Hitachi Energy argues that it conformed with the Karnataka GST Act, 2017, and intends to appeal the ruling to the appellate authorities within the term allowed. The company explains the delay in response as the result of a thorough evaluation of the request.

Hitachi Energy India Ltd closed at Rs.11,662.00, down Rs.223.60, or 1.88%, on the BSE.