Maruti Suzuki issued show cause notice by GST Authority, Rs 139.3 crore penalty imposed 

The notice pertains to tax liability under reverse charge basis on certain services.

Autocar Pro News Desk By Autocar Pro News Desk calendar 29 Sep 2023 Views icon3715 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Maruti Suzuki issued show cause notice by GST Authority, Rs 139.3 crore penalty imposed 

The Goods and Service Tax Authority has issued a show cause notice to Maruti Suzuki, and imposed a penalty of Rs 139.3 crore on the country's largest car maker. 

The notice pertained to the period starting July, 2017 to August, 2022 proposing to demand interest and impose penalty, besides appropriating tax already paid, amounting to Rs 139.3 crore in matter of tax liability under reverse charge basis on certain services, stated the exchange filing with Bombay Stock Exchange.

"The company will file a reply to the Show Cause Notice before the Adjudicating Authority. There is no impact on financial, operation or other activities of the company due to this Show Cause Notice," claimed the company in a statement.

Receives favourable order from Punjab and Haryana High Court on input tax service credit case

In a separate case, Maruti Suzuki informed that the Honorable High Court of Punjab and Haryana have favourably ordered for dismissing appeal filed by Central Excise Department for denial of input service credit to the Company.

The total tax and penalty amount involved in the department's appeal was Rs 57.2 crore, said Maruti Suzuki.

The Department had filed appeals before the High Court of Punjab and Haryana against an earlier Tribunal order of Aug 2016 which was passed in favour of the Company whereby Input Service Credit on certain services was allowed to the Company and penalty was also dropped against the Company," stated the exchange filing.

"The order of the Hon'ble Punjab and Haryana High Court is in favour of the Company. There is no impact on financial, operation or other activities of the Company due to this order," added the statement.

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