Hitachi Energy India Faces ₹46.29 Crore Tax Demand After GST Audit

4 Sep 2024 , 10:31 AM

Hitachi Energy India Faces ₹46.29 Crore Tax Demand After GST Audit On September 3, Hitachi Energy India Ltd received a tax demand totaling ₹46.29 Crore from the Assistant Commissioner of Commercial Taxes (Audit).

The tax demand includes ₹24.41 Crore for GST, ₹19.43 Crore in interest, and ₹2.44 Crore in penalties.

The audit, covering the financial year 2019-2020, found alleged issues such as irregular input tax credit claims, non-payment of GST on outward e-waybills, and misclassification of taxable supplies as zero-rated exports.

The audit revealed irregularities including improper availing of input tax credit due to payments not being made within the required 180-day period according to the Karnataka GST Act, 2017.

It also noted that GST was not paid on some outward e-waybills and that certain taxable supplies were incorrectly classified as zero-rated exports without proper tax payment.

Another concern was the alleged wrongful availing and use of input tax credit in transactions with ABB India Ltd, where the goods were reportedly not supplied. Discrepancies in classifying some transactions as non-GST supplies were also noted.

Hitachi Energy India Ltd asserts that it has followed the Karnataka GST Act, 2017, and plans to appeal the tax demand to the appellate authority. The company cites the need for a thorough review of the order as the reason for the delay in responding.