Hero MotoCorp slapped with GST fine of Rs 605 cr; to contest order in appellate court

Hero MotoCorp on Thursday (April 4, 2024) received a GST notice worth Rs 605 crore for the assessment years 2013-14 to 2017-18 and 2019-20. 

The automaker said that it shall be filing appeals against the orders with appellate authorities.

HeroMotoCorp filed about the development minutes after the stock market closed on Thursday, where the automaker's stock closed lower by 0.66 per cent, or Rs 29.90, at Rs 4,526.40.  

In a statement on Thursday, the automaker said, "The Company has received the aforesaid orders/notices pertaining to six assessment years, amounting to a tax demand of Rs. 308.65 crore and interest thereon of Rs. 296.22 crore. This is on account of certain disallowances, for the assessment years 2013-14 to 2017-18 and 2019-20."

Hero MotoCorp further said, "The Company shall be filing appeals against the orders with appellate authorities including filing of rectification applications. In the opinion of the Management, the demand raised is unsustainable in nature, and is unlikely to have material impact on financials, operations or other activities of the company."