Maruti Suzuki gets Rs 139 crore show cause notice from GST Authority; stock tumbles ~2%

3 Oct 2023 , 09:30 AM

Maruti Suzuki India said on Friday that it received a show cause notice from the GST Authority proposing to demand interest and penalty, in addition to appropriating tax previously paid in the sum of Rs 139.3 crore. 

The notice relates to tax liabilities under reverse charge basis on certain services from July 2017 to August 2022, according to a regulatory filing by Maruti Suzuki India.

The company also stated that it won a favorable ruling from the High Court of Punjab and Haryana, which dismissed appeals made by the Central Excise Department from June 2006 to March 2011.

According to the petition, the Central Excise Department filed appeals before the high court against an earlier tribunal judgment from August 2016 that granted the company input service credit on some services and withdrew the penalty against it.

The total amount involved in the department’s appeal was Rs 57.2 crore in tax and penalties, the business stated. 

At around 9.28 AM, Maruti Suzuki India was trading 1.78% lower at Rs 10.422.05 per piece, against the previous close of Rs 10,610.60 on NSE. The counter hit an intraday low of Rs 10,412.10.

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