Hero MotoCorp Ltd. received a goods and services tax (Goods and services tax) require notification of ₹17.64 crore from the Office of GST Officer, Commerce and Taxation Department, Government of NCT Delhi, according to the Bombay Stock Exchange (BSE) presentation on Sunday, August 18.
MotoCorp Hero Shares closed up 1.02 percent. ₹5,125.80 after Friday’s trading session, compared to ₹5,074.05 at the close of the previous market.
The two-wheeler manufacturer received the Goods and services tax order dated August 17, 2024, citing denial of input tax credit for the financial year 2019-20, according to the company’s regulatory filing.
Hero MotoCorp will pay a total of ₹17.64 crores as demand notice, which is divided into ₹9,38,66,513 or ₹9.38 crore as tax demand under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act), ₹7,32,15,880 or ₹7.32 crore as interest on the tax claim, and ₹93,86,651 or ₹93.86 lakh as the grief fees, according to the company’s regulatory filing on the BSE website.
“Based on the Company’s assessment, the tax “The claim is not sustainable under law,” the two-wheeler maker said in the exchange filing. The company also said that the input tax credit rejected by the GST authorities in New Delhi was legitimately claimed by the company as per the provisions of the GST law, according to Hero MotoCorp.
The granting of the tax credit was “rejected due to non-compliance by the supplier, not attributable to the company”, or not attributable to MotoCorp Herothe company said in the presentation.
Hero MotoCorp is seeking to take “appropriate steps,” including filing an appeal in court, the company said in the statement. The GST tax demand warning did not have any material impact on finances, operations or other company activities, Hero MotoCorp said in the filing.
Hero MotoCorp posted positive results for the April-June quarter, with the company’s net profits rising 36 percent to ₹1,123 crore compared to the previous year.
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