Hitachi Energy India Ltd hit with Rs.46 Cr Tax Demand Notice following GST Audit
The Demand Notice alleged Default in GST Payments and Masked Tax Liabilities among other breaches
Global Technology giant Hitachi Energy India Ltd. was served with a Tax Demand Notice of an eye-watering Rs.46.29 Crores subsequent to a Goods and Services Tax ( GST ) Audit conducted by the Assistant Commissioner of Commercial Taxes (Audit) of the Karnataka GST Department. The Audit by the Assistant Commissioner unearthed Rs.24.41 crore in unpaid GST which was further laden by...
Global Technology giant Hitachi Energy India Ltd. was served with a Tax Demand Notice of an eye-watering Rs.46.29 Crores subsequent to a Goods and Services Tax ( GST ) Audit conducted by the Assistant Commissioner of Commercial Taxes (Audit) of the Karnataka GST Department.
The Audit by the Assistant Commissioner unearthed Rs.24.41 crore in unpaid GST which was further laden by Rs.19.43 crore in accrued interest and Rs.2.44 crore in penalties for the Financial Year 2019-2020.
The Assistant Commissioner by virtue of the GST Audit found numerous irregularities in the financial conduct of Hitachi Energy India, including, but not limited to improper availment of Input Tax Credit, default in payment of GST on external e-way bills, unexplained delay in filing of Returns under the Karnataka GST Act, 2017 and misclassification of taxable supplies as zero-rated exports in contravention of statutory provisions.
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The GST Department further alleged Imprecise Availment of Input Tax Credit by Hitachi Energy in transactions ventured into ABB India Ltd., without supply of goods against which Input Tax Credit had been availed. Further allegations of masking certain transactions as Non-GST supplies were also raised by the Department.
The proceedings dealt a blow to the shares of Hitachi Energy India with a slight decrease in its share prices.
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In response to the proceedings, Hitachi Energy India Ltd. has asserted that it has complied with all the relevant provisions of the Karnataka GST Act, 2017 and plans to Appeal the Order passed by the GST Department before the Appellate Authority, subsequent to extensive internal review of the Order.
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