Hero MotoCorp Receives GST Tax Notice, Vows to Appeal

Hero MotoCorp, India's leading two-wheeler manufacturer, is grappling with tax demand notices. The Delhi GST authorities recently sent a demand notice dated August 17, 2024 with tax claims of over ₹17 crores from Hero MotoCorp. 

The breakdown of this GST demand includes ₹9,38,66,513 in tax, ₹7,32,15,880 in interest, and ₹93,86,651 as a penalty for the fiscal year 2019-2020. Hero MotoCorp maintains that this demand is "not maintainable in law," arguing that the input tax credit was rightfully claimed but disallowed due to supplier non-compliance beyond the company's control.

In a separate development earlier, the Income Tax department had served Hero MotoCorp with a tax demand notice for ₹296.22 crore, plus an equal amount in interest. The notice covered six assessment years: FY14, FY15, FY16, FY17, FY18, and FY20. The company has deemed this demand "unsustainable in nature."

In response to both tax notices, Hero MotoCorp has announced its intention to file appeals with the appropriate appellate authorities. As the situation unfolds, Hero MotoCorp will be gearing up for the festive season, when the brand is slated to launch not just one but three brand-spanking new scooters. One of the most anticipated launches of these three will be the Xoom 160, a proper maxi-scooter with a subtle touch of ADV to its design. To learn more about these upcoming scooters, click the link here.