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Hero MotoCorp has recently received a demand notice of over Rs 17 crore from the Delhi GST authorities. This notice, dated August 17, 2024, pertains to the disallowance of input tax credit for FY 2019-20.
According to the regulatory filing, the tax demand is broken down as follows: Rs 9,38,66,513 as the tax amount, Rs 7,32,15,880 as interest, and Rs 93,86,651 as a penalty. However, Hero MotoCorp believes that this tax demand is not legally sustainable.
The input tax credit that was disallowed by the GST officer in New Delhi was rightfully claimed by the company under the provisions of the GST law. The disallowance was due to the supplier’s non-compliance, which Hero MotoCorp believes is not attributable to them.
As a response, the company is planning to take appropriate steps, including filing an appeal. It has been assured that this issue will not have a material impact on the company’s financials, operations, or other activities.
Stay tuned for further updates on this situation and more insights from Hero MotoCorp!
