Auto giant Hero MotoCorp has received a demand notice of INR 17.64 Cr from Delhi GST authorities due to disallowed input tax credit for FY 2019-20
Hero MotoCorp clarified in the filing that the input tax credit disallowed was rightfully claimed by it as per the provisions of the GST law
The company also plans to take steps including filing of an appeal
Auto giant Hero MotoCorp has received a demand notice of INR 17.64 Cr from Delhi GST authorities due to disallowed input tax credit for FY 2019-20.
In a regulatory filing, the company said it received the order on Saturday (August 17), which demands a GST of INR 9,38,66,513 ( INR 9.4 Cr), which will be marked up with an interest charge of INR 7.3 Cr, and a penalty of INR 93.86 Lakh, bringing the total up to INR 17.64 Cr.
Further, Hero MotoCorp clarified in the filing that the input tax credit disallowed by the office of the GST officer, New Delhi, was rightfully claimed by it as per the provisions of the GST law but disallowed on account of supplier’s non-compliance, which is not attributable to the company.
“Therefore, the tax demand is not maintainable in law. Accordingly, the company shall take appropriate steps including filing of an appeal,” added the two-wheeler manufacturer.
In the past few weeks, the central governing body has kept a sharp watch on the financials of companies, which resulted in companies from diverse sectors also receiving GST notice.
For instance, only a few weeks ago, B2B travel portal Travel Boutique Online (TBO Tek) received a show cause notice from the Deputy Commissioner of State Tax (SGST), Gurugram (East), over mismatch in tax filings for the financial year 2017-18, amounting to INR 89.12 Lakh.
Meanwhile, crypto exchange Binance received an INR 722 Cr GST notice on the fees collected from Indian customers trading on its platform. It was notably the first time when Indian GST authorities have issued notice on a foreign exchange platform for alleged tax evasion.
Additionally, foodtech major Zomato also received a goods and service tax (GST) demand notice in July, of INR 9.45 Cr from the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka.
