Maruti Suzuki Faces Rs 139.3 Crore GST Challenge

Maruti Suzuki India is contesting a Haryana GST appellate authority's tax demand of Rs 139.3 crore. This demand pertains to tax liability under reverse charge for services between July 2017 and August 2022. Though the company paid the amount earlier, an appeal is planned. Financial operations remain unaffected.

Maruti Suzuki India Ltd. (MSI), the country's largest carmaker, is challenging a tax demand of Rs 139.3 crore levied by a Haryana GST appellate authority.

According to a regulatory filing by MSI, the Commissioner of Appeals upheld the demand for the period from July 2017 to August 2022. This relates to a tax liability identified under the reverse charge mechanism for certain services.

Despite preemptively settling the amount before a show cause notice was issued on September 28, 2023, MSI intends to contest the order before the Tribunal. The company assures stakeholders that the order will not significantly impact its financial or operational activities. On Wednesday, Maruti Suzuki shares closed with a slight increase of 0.35%, priced at Rs 11,963.15 per share on the BSE.

(With inputs from agencies.)