Hero MotoCorp Ltd. got a ₹17.64 crore GST demand notice from the Office of the GST Officer, Government of NCT Delhi's Department of Trade and Taxes, according to the company's BSE filing on Sunday, August 18.
Hero MotoCorp shares finished 1.02 percent higher at ₹5,125.80 on Friday, up from ₹5,074.05 at the previous close.
According to the company's regulatory filing, the two-wheeler producer got the GST order dated August 17, 2024, which states that the input tax credit for the fiscal year 2019-20 would be disallowed.
According to Hero MotoCorp's regulatory filing on the BSE website, the company will pay ₹17.64 crore for the demand notice. This includes ₹9.38 crore for the tax demand under Section 73 of the Central Goods & Service Tax Act, 2017 (CGST Act), ₹7.32 crore for interest, and ₹93.86 lakh for penalty fees.
"Based on the Company's assessment, the tax demand is not maintainable in law," the two-wheeler manufacturer stated in its exchange statement. According to Hero MotoCorp, the input tax credit denied by the GST authorities in New Delhi was legitimately claimed by the firm in accordance with GST legislation regulations.
The provision for the tax credit was "disallowed on account of the supplier's non-compliance, which is not attributable to the company," or is not attributable to Hero MotoCorp, according to the filing.
According to the statement, Hero MotoCorp intends to take "appropriate steps" including submitting an appeal in court. The GST tax demand letter had no meaningful impact on the company's financials, operations, or other activities, it stated
In the April-June quarter, Hero MotoCorp's net earnings increased by 36% to ₹1,123 crore over the previous year.
