Maruti Suzuki India announced that a Haryana Goods and Service Tax ( GST ) appeals authority upheld a tax demand of Rs 139.3 crore for the period from July 2017 to August 2022. The company plans to appeal the order but stated it won’t significantly impact its operations.
The GST Appellate Authority recently upheld a demand of ₹139.3 crore against Maruti Suzuki India Ltd. This ruling reaffirms the original decision by lower authorities, requiring Maruti Suzuki to pay the tax amount in question, including interest and applicable penalties. The case centered on GST-related compliance issues, where the tax authorities identified discrepancies and assessed additional tax liabilities.
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The Commissioner (Appeals) has passed an order for the period July 2017 to August 2022 upholding the demand of Rs 1,393 million, in a matter of tax liability under reverse charge basis on certain services.
It was contended that the company had paid the tax amount before the issuance of show cause notice dated September 28, 2023. The Maruti Suzuki said that it will be filing an appeal against the appellate order before the Tribunal. It was further announced that the order will have no major impact on the financial, operational or other activities of the company.
Other auto manufacturers may now face closer scrutiny from GST authorities regarding their tax reporting practices, input tax credit claims, and overall compliance with GST provisions.
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The GST Appellate Authority’s decision upholding the demand against Maruti Suzuki emphasizes the need for accurate reporting and strict adherence to GST regulations. It reflects the government’s strong stance on reducing revenue leakages especially high-revenue sectors like automotive.
This ruling serves as a reminder for companies to maintain rigorous internal GST compliance audits and accurate classification of goods and services to avoid similar disputes.The case highlights the risk of substantial financial liabilities arising from compliance issues and underlines the importance of adhering to regular audits and up-to-date records.
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