Hyundai Motor India Ltd (HMIL) has received a GST cess demand and penalty totaling ₹517.34 crore from the Commissioner (Appeals), CGST Dept, Tamil Nadu. This demand stems from alleged short payments of GST Compensation Cess related to certain SUV models.
In a notification to the National Stock Exchange, HMIL disclosed that the demand comprises ₹258.67 crore for the GST Compensation Cess and an equal penalty amount. The claims relate to the period from September 2017 to March 2020.
The company stated that this order will not affect its financial standing, operations, or other activities. HMIL is currently reviewing the order and intends to file an appeal.
A spokesperson from HMIL expressed confidence in the amendments and clarifications issued by the Central Board of Indirect Taxes and Customs, believing they support the company’s position on this issue. “We are in the process of thoroughly reviewing the order and will seek a legal remedy through the appropriate channels,” the spokesperson added.
