New Delhi, July 22 Hyundai Motor India Limited (HMIL) has been slapped with a Rs 258.67 crore penalty by the GST and Central Excise authorities for allegedly underpaying compensation cess on certain SUV models between September 2017 and March 2020, the carmaker confirmed on Tuesday.
The same amount -- Rs 258.67 crore -- has also been confirmed as the cess shortfall, taking the total tax demand to over Rs 517 crore, Hyundai India said in its stock exchange filing.
"The company has received an order from Commissioner (Appeals), CGST Dept, Tamil Nadu, confirming GST compensation cess demand of Rs 258.67 crore along with penalty of Rs 258.67 crore on the allegation of short payment of GST compensation cess on certain SUV models for the period September 2017 - March 2020," HMIL said.
The company stated that the Office of the Commissioner (Appeals - II) of the CGST Department in Tamil Nadu issued the order on July 21.
“However, HMIL did not mention which SUV models were involved in the case,” the company said in its regulatory filing.
Despite the large tax demand, Hyundai India clarified that there would be no impact on its financial, operational, or other business activities due to this order.
The company also confirmed that it is currently reviewing the order and plans to appeal the decision.
"There is no impact on financial, operational or other activities of the company due to this order. The company is reviewing the order and will exercise its right to file an appeal," it added.
A Hyundai spokesperson said that the company believes recent amendments and clarifications issued by the Central Board of Indirect Taxes and Customs (CBIC) support the company's position.
“We are in the process of reviewing the order and will seek a legal remedy through an appropriate forum,” the spokesperson added.
At present, HMIL sells several SUV models in India, including the Exter, Venue, Creta, Alcazar, Tucson, Creta Electric, and Ioniq 5.
The penalty order relates to past sales and is not expected to affect current or future vehicle offerings.
--IANS
pk/dan
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