Hero MotoCorp Slapped With Rs 456.06 Crore GST Penalty By Rajasthan Tax authorities
Hero MotoCorp has received two tax orders from the Central Goods and Services Tax (CGST) department, Alwar, Rajasthan, amounting to Rs 464.56 crore. The company disputes the claims and intends to challenge them through legal channels.
Hero MotoCorp Slapped With Rs 456.06 crore GST Penalty By Rajasthan Tax authorities
In a regulatory filing, Hero MotoCorp said that they received two orders from the Additional Commissioner, CGST, Alwar, on February 3, 2025. The Company has received an order from the Additional Commissioner, Central Goods and Services Tax, Alwar, Rajasthan imposing a penalty of INR 456.06 crore under Section 74 of the Central Goods and Service Tax Act, 2017 along with an equivalent amount of GST and applicable interest thereon by disputing the tax rates on the parts and accessories supplied by the Company during the period July 2017 to March 2024.
The filing said that, The Company has rightly classified the parts and accessories following the General Rules of Interpretation (GRI Rules), relevant sections’ notes, chapter notes, HSN (Harmonised System of Nomenclature) Explanatory notes which are squarely covered in many Apex court’s judgements. Therefore, the tax demand is not maintainable in law. However, the tax department has disputed the classification followed by the Company.
Hero MotoCorp maintains that its classification of parts follows established legal principles, including the General Rules of Interpretation (GRI Rules) and Harmonised System of Nomenclature (HSN) notes, which have been upheld in previous court rulings. The company believes the tax demand is not legally valid and has stated its intention to appeal against the orders.
The company asserts that the tax demand does not have any material impact on its financial or operational activities. It plans to take legal steps, including filing appeals, within the stipulated time frame.
End Article
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