MUMBAI: Hyundai Motor India Ltd (HMIL), one of the country’s top automobile manufacturers, is under investigation by the Maharashtra State Tax Authority for alleged discrepancies in its input tax credit (ITC) claims. The tax authority has issued a show cause notice to the company, accusing it of claiming an “excess ITC” in its GSTR 3B/9 returns for the financial year 2020-21, which was not corroborated by the data in GSTR 2B/8A. The notice also points to issues regarding the reverse charge mechanism (RCM) tax paid by Hyundai.
The total demand raised in the notice amounts to Rs 2.741 crore in taxes and Rs 2.279 crore in interest. Hyundai clarified that it intends to respond to the show cause notice within the stipulated timelines, asserting that this is a routine compliance issue that does not impact the company’s financials or operations. The company also reassured its stakeholders that this matter would be addressed through the appropriate channels.
The company further stated that the notice has no immediate bearing on its activities, and it is confident in resolving the issue with the adjudicating authorities. Hyundai Motor India, based in Gurugram, Haryana, remains a key player in the Indian automotive market.
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The show cause notice highlights the ongoing scrutiny of input tax credit claims in India, where discrepancies in GST filings have led to penalties and investigations for several firms. For instance, the Directorate General of GST Intelligence (DGGI) recently uncovered fraudulent ITC claims worth billions across various industries. Hyundai’s case, however, is still under review.
Hyundai’s recent financial reports also noted a 16% decline in its net profit for Q2, which was partly attributed to weak domestic demand and challenges in its export markets.
Web Team, C6N
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