Hero MotoCorp Receives Demand Notice of Over Rs 17 Crore from Delhi GST Authorities
New Delhi: Hero MotoCorp announced on Sunday that it has been issued a demand notice of over Rs 17 crore from the Delhi GST authorities. The two-wheeler major received an order dated August 17, 2024, regarding the disallowance of input tax credit for the fiscal year 2019-20 from the Office of the GST Officer, Government of NCT of Delhi, as per a regulatory filing.
According to the company, the tax demand consists of Rs 9,38,66,513 for the tax amount, Rs 7,32,15,880 for interest, and Rs 93,86,651 for the penalty, as indicated in the notice. Hero MotoCorp also stated that based on their assessment, the tax demand is not maintainable in law.
The input tax credit, which was disallowed by the office of the GST Officer, New Delhi, was reportedly rightfully claimed by the company in accordance with the provisions of the GST law. However, it was disallowed due to the non-compliance of the supplier, for which the company is not considered responsible, as per Hero MotoCorp.
The company affirmed that it will take appropriate measures, including filing an appeal. Furthermore, Hero MotoCorp emphasized that there will be no material impact on the financials, operations, or other activities of the company due to this development.
