Hero MotoCorp announced on Sunday that the Delhi GST authorities had sent it a demand notice for more than Rs 17 crore.
The two-wheeler manufacturer stated in a regulatory filing that the business has received an order dated August 17, 2024, from the Office of the GST Officer, Government of the NCT of Delhi, disallowing input tax credit for FY 2019–20.
According to the notice, the company claimed that the tax demand was for Rs 9,38,66,513, interest of Rs 7,32,15,880, and penalty of Rs 93,86,651.
It further stated that the tax claim is not legally maintainable based on the company’s assessment.
Hero MotoCorp stated that the input tax credit that was denied by the GST Officer’s office in New Delhi was legitimately claimed by the firm in accordance with the GST law, but it was denied because of the supplier’s non-compliance, which was not the company’s fault.
It further stated that as a result, the business will take the proper actions, such as launching an appeal.
Hero MotoCorp stated that there is no discernible effect on the company’s operations, finances, or other business-related activities.