Hero MotoCorp Challenges Massive GST Demand

Hero MotoCorp faces a GST demand of Rs 456 crore issued by Rajasthan authorities due to disputed tax rates on product parts. The company plans to appeal the decision, asserting the demand is legally untenable. Despite the demand, Hero says there is no impact on financials or operations.

Hero MotoCorp has been slapped with a Goods and Services Tax (GST) demand amounting to Rs 456 crore by the Rajasthan government, as declared on Tuesday.

The notification, issued by the Additional Commissioner of Central Goods and Services Tax in Alwar, cites penalties under Section 74 of the CGST Act of 2017. The dispute centers on the tax rates applied to parts and accessories supplied from July 2017 to March 2024, the company revealed in a regulatory filing.

Despite the gravity of the demand, Hero MotoCorp maintains that the claim lacks legal foundation. According to its assessment, the company believes the demand is not tenable and plans to file appeals. Furthermore, Hero assures stakeholders there will be no significant impact on its financial status, operations, or other activities. As of Tuesday, the company's shares recorded a decline, closing 1.14% down at Rs 4,237.25 on the BSE.