Rs.17.64 crore GST Notice sent to Hero MotoCorp from Delhi GST Department

Auto giant Hero MotoCorp Ltd. got a GST demand notice of Rs.17.64 crore from the Office of the GST Officer, Government of NCT Delhi’s Department of Trade and Taxes, according to a Bombay Stock Exchange (BSE) report on Sunday, August 18.

The GST notice issued to Hero MotoCorp by the Delhi GST administration is for a particular term and includes a thorough examination of the company’s tax liabilities. The specific nature of the complaints or disparities referenced in the notice has yet to be publicly released. However, it is critical to recognize that India’s GST system is intended to ensure compliance with tax legislation and avoid instances of tax evasion or miscalculation.

The two-wheeler producer received the GST order dated August 17, 2024, which states that the input tax credit for the financial year 2019-20 will be disallowed, the company said in a regulatory filing.

According to the company’s regulatory filing on the BSE website, Hero MotoCorp is to pay a total of Rs.17.64 crore as the demand notice, which is divided into Rs.9,38,66,513 or Rs.9.38 crore as tax demand under Section 73 of the Central Goods and Service Tax Act, 2017 (CGST Act), Rs.7,32,15,880 or Rs.7.32 crore as interest on the tax demand, and Rs.93,86,651 or Rs.93.86 lakh as the penalty fees.

Hero MotoCorp shares closed 1.02% higher at Rs.5,125.80 on Friday, up from Rs.5,074.05 at the previous close.

Hero MotoCorp has not yet made a public remark regarding the GST notice. It remains to be seen how the company will respond to the demand and whether it will negotiate with the Delhi GST administration to address the problem amicably.