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“…we wish to inform that the company has received two orders on February 03, 2025, from the Additional Commissioner, Central Goods and Services Tax, Alwar, Rajasthan. Based on the Company’s assessment, the tax demand is not maintainable in law under both orders. Accordingly, the Company shall take appropriate steps including filing of Appeals,” Hero Motocorp said in a regulatory filing.
The first order imposed a penalty of ₹456.06 crore under Section 74 of the CGST Act, along with an equivalent amount of GST and applicable interest. The second order levied an ₹8.5-crore penalty for after-sales parts supplied between July 2017 and March 2021, also accompanied by an equivalent GST amount and interest.
Also Read: Dhanlaxmi Bank Q3 Results | Net profit zooms over 6x to ₹20 crore with double-digit NII growthHero MotoCorp maintained that it has correctly classified the parts under the General Rules of Interpretation (GRI Rules) and Harmonised System of Nomenclature (HSN) notes, which align with past judgments from the apex court. The company believes the tax demand is not legally maintainable. It will file an appeal against both orders.
Hero MotoCorp said the orders will not have a material impact on its financials, operations, or business activities. The company is confident about its legal position and will take appropriate steps to contest the demands.
“The company believes that it has a strong case on merits and based on the company’s assessment, the tax demand is not maintainable in law. Accordingly, the Company shall take appropriate steps including filing of an Appeal before the appellate authority within the stipulated time. Therefore, there is no material impact on financials, operations or other activities of the company,” it added.
Shares of Hero Motocorp Ltd ended at ₹4,241.00, down by ₹45.10, or 1.05% on the BSE.
