Maruti receives show cause notice from GST Authority, demands interest

Maruti Suzuki India on Friday said it has received a show cause notice from the GST Authority proposing to demand interest and impose penalty, besides appropriating tax already paid, amounting to Rs 139.3 crore.

The notice pertains to the matter of tax liability under reverse charge basis on certain services for the period of July 2017 to August, 2022, Maruti Suzuki India said in a regulatory filing.

“The company will file a reply to the show cause notice before the Adjudicating Authority,” it said, adding that there was no impact on its financial, operation or other activities due to the notice.

The company also said it has received a favourable order from the High Court of Punjab and Haryana wherein appeals filed by the Central Excise Department for the period June 2006 to March 2011 have been dismissed.

The Central Excise Department had filed appeals before the high court against an earlier tribunal order of August 2016, which was passed in favour of the company in which input service credit on certain services was allowed to it and penalty was also dropped against it, the filing said.

“The total tax and penalty amount involved in the department’s appeal was Rs 57.2 crore,” the company said.