Hero MotoCorp announced on Sunday that it has been served with a tax demand notice exceeding Rs 17 crore from the Delhi GST authorities. The notice, dated August 17, 2024, concerns the disallowance of input tax credit for the financial year 2019-20. The tax demand includes Rs 9,38,66,513 in principal tax, Rs 7,32,15,880 in interest, and Rs 93,86,651 in penalties.
Company’s Response
Hero MotoCorp has stated that it believes the tax demand is unjustified. The company maintains that the input tax credit was correctly claimed under GST provisions but was disallowed due to non-compliance by a supplier, an issue that is not attributable to the company itself.
The company plans to challenge the demand through appropriate legal channels, including filing an appeal. It emphasized that this issue will not have any material impact on its financials, operations, or other business activities.
Next Steps and Impact
Hero MotoCorp is preparing to address the tax demand by taking necessary legal actions. The company remains confident that the claim for input tax credit was valid and expects to resolve the matter in due course. The tax dispute is not expected to affect the company’s overall operations or financial performance.