Hyundai Motor India Ltd on Tuesday said it received a demand of Rs 517.34 crore from tax authorities, along with a penalty, for alleged short payment of Goods and Service Tax (GST) compensation cess on its certain SUV models.
“The company has received an order from Commissioner (Appeals), CGST Dept, Tamil Nadu, confirming GST Compensation Cess demand of Rs. 258.67 Crs along with Penalty of Rs. 258.67 Crs on the allegation of short payment of GST Compensation Cess on Certain SUV Models for the period September 2017 - March 2020,” Hyundai said in an exchange filing.
Hyundai stated there's no impact on the company's financial, operational, or other activities due to this order. The company is currently reviewing the order and will exercise its right to file an appeal.
The GST compensation cess on vehicles is an additional levy imposed on certain categories of vehicles, over and above the regular GST, often 28%. The compensation cess was introduced in 2017 to collect funds to compensate states for any shortfall in their tax revenue due to the shift to GST.