Maruti Suzuki's Gujarat Division Faces Rs 173.90 Crore Tax Blow by GST Department

4 Jan 2024 , 01:38 PM

Maruti Suzuki India said on Wednesday that the Gujarat GST authority has upheld the tax demand of Rs 173.9 crore, coupled with a penalty of Rs 17.4 crore, for its subsidiary Suzuki Motor Gujarat Pvt Ltd, adding that the subsidiary business will appeal the ruling to the first appellate authority.

The country’s largest passenger car manufacturer, stated in a filing with the exchange, that its subsidiary, Suzuki Motor Gujarat Pvt Ltd, has received an adjudication order on December 21, 2023, from the Gujarat GST authority. The order affirms a demand of Rs 173.9 crore, coupled with a penalty of Rs 17.4 crore, pertaining to tax liability under reverse charge basis for specific services.

The company also mentioned, ‘SMG intends to challenge the order by filing an appeal with the initial appellate authority.’ It emphasized that the order’s impact on the company’s financial, operational, or other activities will be negligible.

The adjudication order granted by the Gujarat GST Department is valid from July 2017 to August 2022, according to Maruti Suzuki India. Suzuki Motor Gujarat (SMG) has previously paid the tax amount of Rs 173.9 crore prior to the issuing of the show cause notice, according to the company.

At around 1.35 PM, Maruti Suzuki was trading 0.76% lower at Rs 10,000.95 per piece, against the previous close of Rs 10,077.65 on NSE.

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