Hero MotoCorp Faces ₹17 Crore GST Demand, Plans to Appeal

19 Aug 2024 , 01:04 PM

Hero MotoCorp received a demand notice of over ₹17 Crore from Delhi GST authorities on August 17, 2024. The notice involves disallowance of input tax credit for FY 2019-20, issued by the Office of the GST Officer, Government of NCT of Delhi.

The total tax demand amounts to ₹9.38 Crore, with an additional ₹7.32 Crore as interest and ₹93.86 lakh as a penalty. Hero MotoCorp believes the tax demand is not legally maintainable.

Shares of Hero MotoCorp rose by over 0.54%, reaching ₹5155 at the time of writing on August 19, 2024 at 1:00 pm. Hero MotoCorp stock has gained a total of 75% in the last one year, and almost 25% since the beginning of the year.

The disallowed input tax credit was claimed according to GST provisions but was rejected due to the supplier’s non-compliance, which Hero MotoCorp claims is not its responsibility.

The company plans to challenge the notice through appropriate legal steps, including filing an appeal. Hero MotoCorp emphasized that the notice will not have a material impact on its financials, operations, or other activities.

Hero MotoCorp, headquartered in Delhi, is the world’s largest two-wheeler manufacturer, holding a 46% market share in the Indian two-wheeler industry.