Maruti Suzuki India announced on Friday that it has been issued a show cause notice by the GST Authority. The notice proposes the imposition of interest and penalties, in addition to the appropriation of previously paid taxes, totaling Rs 139.3 crore. This notice pertains to the issue of tax liability under the reverse charge basis for certain services for the period spanning from July 2017 to August 2022, as detailed in a regulatory filing by Maruti Suzuki India.
The company has indicated that it will submit a response to the show cause notice to the Adjudicating Authority. Maruti Suzuki India further clarified that this notice has not had any impact on its financial, operational, or other activities.
In a separate development, the company revealed that it has received a favorable order from the High Court of Punjab and Haryana. This order pertains to appeals filed by the Central Excise Department for the period from June 2006 to March 2011, all of which have been dismissed by the court. The Central Excise Department had initiated appeals against a previous tribunal order from August 2016, which ruled in favor of Maruti Suzuki India. This tribunal order had allowed the company to claim input service credit on certain services and had dropped associated penalties.
The total amount of tax and penalties involved in the department’s appeal was Rs 57.2 crore, as stated in the company’s filing.
