Hero MotoCorp Faces Rs 17 Crore GST Demand Notice

Hero MotoCorp received a demand notice exceeding Rs 17 crore from Delhi GST authorities. The GST Officer's office disallowed input tax credits for FY 2019-20 due to the supplier's non-compliance. Hero MotoCorp plans to contest this demand, asserting it is not legally maintainable and ensuring no impact on their financials.

Hero MotoCorp on Sunday announced that it has been served a demand notice totaling over Rs 17 crore from the Delhi GST authorities.

The notice from the Office of the GST Officer, Government of NCT of Delhi, dated August 17, 2024, disallows input tax credits for FY 2019-20. The company stated that the demand includes a tax amount of Rs 9,38,66,513, interest of Rs 7,32,15,880, and a penalty of Rs 93,86,651.

Hero MotoCorp claims that the tax demand is not legally tenable and cites the disallowance as a result of the supplier's non-compliance, which is not the company's fault. The company intends to take appropriate measures, including filing an appeal, and reassured stakeholders that there is no significant impact on their financials or operations.

(With inputs from agencies.)