Maruti Suzuki India (MSI) has faced a major hurdle. A 139.3 crore tax demand has been confirmed by a Haryana GST appeals authority. The business will be impacted by this choice from July 2017 until August 2022.
Liabilities under a reverse charge system for certain services give rise to the tax demand. This information was revealed by MSI on Wednesday in a regulatory filing. Notably, prior to the show-cause notice being sent on September 28, 2023, the business had already paid this tax amount.
"In a matter of tax liability under reverse charge basis on certain services, the Commissioner (Appeals) has passed an order for the period of July 2017 to August 2022, upholding the demand of Rs 1,393 million," the biggest automaker in India stated in a regulatory statement on Wednesday.
MSI intends to submit an appeal to the Tribunal in response to the appellate order. The automaker assured interested parties that neither its financial nor operational operations will be significantly impacted by this order.
Maruti Suzuki shares increased by 0.35% on the stock market, closing at ₹11,963.15 a share on the BSE.
