Revenue officials deliver GST notice worth 517 crore INR to Hyundai India

Hyundai Motor India Ltd (HMIL) is set to appeal a demand notice issued by the Indian government, seeking ₹517.34 crore in GST compensation cess for certain SUV models. The notice, which covers the period from September 2017 to March 2020, includes a GST compensation cess of ₹258.67 crore and an equal amount as penalty.

The dispute centres around the classification and payment of GST compensation cess for specific SUV models. Hyundai Motor India has stated that it remains confident in its interpretation of the GST cess rules and believes that recent amendments and clarifications issued by the Central Board of Indirect Tax and Customs (CBIC) support its position in the matter.

The demand notice has not affected HMIL's financial, operational, or business activities, according to the company. The ongoing issue, which has also affected several other automakers in the country, further emphasises the challenges faced by the industry in interpreting GST compensation cess regulations on SUVs.

In response to the demand, Hyundai Motor India is currently reviewing the order and intends to pursue legal remedies. The company maintains that it will vigorously defend its position and ensure compliance with the applicable laws and regulations.

This development comes at a time when the automotive sector in India is grappling with various challenges, including the implementation of GST and the ongoing COVID-19 pandemic. Despite these challenges, Hyundai Motor India continues to focus on delivering high-quality products and services to its customers.

In other news, Hyundai Motor India has not provided any new information about its partnership with IIM Tiruchirappalli and MDI Gurgaon for the ARISE initiative. The programme aims to foster innovation and entrepreneurship among students and start-ups in the country.