Hero MotoCorp Faces ₹17 Crore GST Tax Demand
By: Admin
August 18, 2024
Categories: GST Recent News
4 Min Read
Hero MotoCorp Faces ₹17 Crore GST Demand Over ITC Disallowance
Hero MotoCorp, a leading global manufacturer in the two-wheeler sector, is currently facing a significant tax issue from the Delhi GST authorities. The company has been served with a tax demand notice amounting to ₹17 crore for the financial year 2019-20. This demand arises primarily due to the disallowance of input tax credit (ITC) claimed by the company.
The tax demand breakdown includes ₹9.38 crore for the disallowed ITC, ₹7.32 crore in interest, and ₹93.86 lakh in penalties. Hero MotoCorp contends that it followed GST regulations accurately when claiming ITC. The company attributes the disallowance to issues with supplier compliance, which it claims is beyond its control.
In response to the notice, Hero MotoCorp has announced plans to appeal the decision. The company argues that the disallowance stems from non-compliance by their suppliers, not from any errors in their own tax filings. This appeal process will be crucial for Hero MotoCorp as it navigates the complex GST landscape.
The timing of this demand is particularly challenging for Hero MotoCorp, as the company is already dealing with other GST-related issues. The resolution of this dispute could have significant ramifications for Hero MotoCorp’s financial health and its supplier relationships.
Industry observers and stakeholders will be closely monitoring how Hero MotoCorp handles this situation. The outcome could influence broader GST compliance practices within the two-wheeler industry and impact Hero MotoCorp’s operational and financial strategies.
As this situation develops, the industry will be watching to see how Hero MotoCorp addresses the demand and the potential consequences for its business operations and financial stability.
HeroMotoCorp #GSTNews #TaxDemand #IndianEconomy #BusinessNews #TwoWheeler #FinanceUpdate #GSTCompliance
https://aaermlawassociates.com/hero-motocorp-gst-demand-itc-disallowance-2024/