Hero MotoCorp has received a demand notice of over Rs 17 crore from the Delhi GST authorities, dated August 17, 2024, due to disallowance of input tax credit for FY 2019-20.
The breakdown includes a tax demand of Rs 9,38,66,513, interest of Rs 7,32,15,880, and a penalty of Rs 93,86,651.
The company stated that based on its assessment, the tax demand is not maintainable in law. "The input tax credit disallowed by the office of the GST Officer, New Delhi, was rightfully claimed by the company as per the provisions of the GST law but disallowed on account of the supplier's non-compliance, which is not attributable to the company," Hero MotoCorp said.
Hero MotoCorp plans to take appropriate steps, including filing an appeal. The company emphasised that there is no material impact on its financials, operations, or other activities.
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