Hyundai Receives Rs. 517 Crore GST Demand Notice

Hyundai Receives Rs. 517 Crore GST Demand From Commissioner (Appeals), CGST Department Of Tamil Nadu, Hyundai To Appeal Order

Hyundai has received a GST demand notice totalling Rs. 517.34 crore from tax authorities. This includes Rs. 258.67 crore as GST compensation cess and an equal amount as penalty. The notice was issued by the Commissioner (Appeals), CGST Department, Tamil Nadu.

The dispute concerns GST cess classification on specific SUV models sold between September 2017 and March 2020. Several automakers have faced similar issues with GST cess on SUVs. This reflects ongoing confusion around the interpretation of cess rules for utility vehicles.

Hyundai has stated in a regulatory filing that it is currently reviewing the order issued by tax authorities. The company plans to challenge the demand through legal remedies. It believes recent CBIC clarifications support its interpretation of GST laws.

Hyundai clarified that the demand will not impact its financial, operational, or other core business activities in any way. The company is preparing to file an official appeal soon. It remains confident about its understanding of GST compensation cess provisions.

Outlook

This development highlights regulatory challenges automakers face with respect to GST cess on vehicles in India. The outcome may affect future tax cases. Hyundai’s response could set a benchmark for similar disputes in the auto industry.

Source

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