On Wednesday, Maruti Suzuki India confirmed that the Gujarat GST authority has maintained a tax demand totalling Rs 173.9 crore, coupled with a penalty of Rs 17.4 crore on its subsidiary, Suzuki Motor Gujarat Pvt Ltd. The subsidiary intends to appeal this decision and will approach the first appellate authority to contest the order.
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In an official filing with the exchange, the foremost passenger car manufacturer in the country disclosed that its subsidiary, Suzuki Motor Gujarat Pvt Ltd, received an adjudication order dated December 21, 2023, from the Gujarat GST authority. The order upholds a demand of Rs 173.9 crore, accompanied by a penalty of Rs 17.4 crore about tax liability under reverse charge for specific services.
Gujarat GST Department issued the adjudication order for the period July 2017 to August 2022, Maruti Suzuki India said.
Before the show cause notice was issued, Suzuki Motor Gujarat (SMG) had already settled the tax sum of Rs 173.9 crore, as stated.
The company also confirmed SMG’s intention to contest the order by appealing to the first appellate authority.
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Furthermore, the company clarified that this order’s implications wouldn’t significantly affect its finances, operations, or other activities.
On Wednesday, Maruti Suzuki shares dipped by 1.19% to Rs 10,075.45.
