Hero MotoCorp slapped with tax notice by Delhi GST authorities
There is no material impact on financials, operations or other activities of the company, Hero MotoCorp said.
Hero MotoCorp said on Sunday that it had received a demand notice amounting to more than Rs 17 crore from Delhi Goods and Services Tax (GST) authorities, comprising a tax demand of Rs 9.4 crore, interest of Rs 7.3 crore, and a penalty of Rs 93.9 lakh. The tax demand, for disallowance of input tax credit for FY20, involved the period between April 2019 and March 2020, the auto major said in a regulatory filing.
The company received the order on Saturday.
Based on Hero MotoCorp's assessment, the tax demand is not maintainable in law, it said.
"The Input Tax Credit disallowed by the Office of the GST Officer, New Delhi was rightfully claimed by the Company as per the provisions of the GST law but disallowed on account of supplier’s non-compliance, which is not attributable to the Company," Hero MotoCorp said.
Hero MotoCorp said the notice does not have any material impact on its financials, operations, or other activities, and that it will take appropriate steps, including filing an appeal.
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