Hyundai Motor India Ltd (HMIL) has been served a demand notice totalling ₹517.34 crore by tax authorities, including penalties, for the alleged short payment of GST compensation cess on certain SUV models.
The order, issued by the Commissioner (Appeals) of the CGST Department in Tamil Nadu, confirms a GST compensation cess demand of ₹258.67 crore, along with an equal amount as penalty, covering the period from September 2017 to March 2020.
The dispute centres on the classification and payment of GST compensation cess for specific SUV models, an issue that has affected several automakers in the country. Hyundai Motor India, in a regulatory filing, stated that it is currently reviewing the order and intends to pursue legal remedies.
The company believes that recent amendments and clarifications issued by the Central Board of Indirect Tax and Customs (CBIC) support its position in the matter.
Hyundai Motor India has also clarified that the order will not have any impact on its financial, operational, or other business activities. The company is preparing to file an appeal against the demand and remains confident in its interpretation of the GST cess rules.
This development highlights the ongoing challenges faced by automakers regarding the interpretation and application of GST compensation cess regulations on SUVs in India.
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