Maruti Suzuki India (MSI) announced on Wednesday that a Haryana GST appeals authority has upheld a tax demand of ₹139.3 crore against the company.
According to a regulatory filing by MSI, “The Commissioner of Appeals has issued an order covering the period from July 2017 to August 2022, confirming the demand of ₹1,393 million. This pertains to tax liability under the reverse charge mechanism for certain services.”
The company mentioned that it had already paid the tax amount before the show cause notice was issued on September 28, 2023. India’s largest carmaker also confirmed that it will appeal the appellate order before the Tribunal.
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Maruti Suzuki India also noted that the order would not have any material impact on the company’s financial, operational, or other activities. On the day of the announcement, Maruti Suzuki shares had closed 0.35% higher at ₹11,963.15 per share on the BSE, inspite of the unexpected setback.
Maruti Suzuki India Limited is the Indian subsidiary of Japan’s Suzuki Motor Corporation and is recognized as the largest automobile manufacturer in India, specializing in small cars.
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