Hyundai India receives show cause notice for alleged tax discrepancies

Tax authority Maharashtra alleges 'excess input tax credit claimed' by Hyundai India in GSTR 3B/9, which is not confirmed in GSTR 2B/8A of GSTR 9, along with RCM tax paid by the company

One of the country’s leading automobile manufacturers, Hyundai Motor India Ltd (HMIL) received a show cause notice from the Maharashtra State Tax Authority for alleged discrepancies in input tax credit (ITC) claims for the financial year 2020-21.   

According to the notice, the tax authority has alleged “excess ITC claimed in GSTR 3B/9, which is not confirmed in GSTR 2B/8A of GSTR 9, along with RCM tax paid by the company.” The total demand raised in the notice includes Rs 2.741 crore towards tax and Rs 2.279 crore towards interest.   

Hyundai Motor India, in a filing to the National Stock Exchange (NSE) and BSE Ltd under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, clarified that the company will respond to the notice within the prescribed timelines.  

 

 

Hyundai addresses compliance issue 

The company further mentioned that this notice would have no immediate impact on its financial, operational, or other activities. The issue pertains to routine compliance, and Hyundai plans to address it through appropriate channels with the adjudicating authority.   

Hyundai Motor India, headquartered in Gurugram, Haryana, is the Indian subsidiary of South Korean automotive giant Hyundai Motor Company and a significant player in the Indian automobile market.  

 

Hyundai Q2 profit drops 16 per cent 

Hyundai Motor India reported a 16 per cent decline in its net profit for the second quarter, following its public listing last month. The decline was attributed to weak domestic demand and the Red Sea crisis, which affected exports.

For the July-September quarter, the Indian arm of the South Korean carmaker saw its net profit fall to Rs 1,375.47 crore, down from Rs 1,628.46 crore in the same period last year. Revenue also dropped by 7.5 per cent, falling to Rs 17,260.38 crore from Rs 18,659.69 crore.