Hero MotoCorp gets over 17 crore rupees tax notice from Delhi GST authorities | Hero MotoCorp gets tax demand notice of ₹ 17 crore: The company will file an appeal against this order of Delhi GST department

Hero MotoCorp has received a tax demand notice of more than Rs 17 crore from officials of the Delhi GST department. Hero MotoCorp gave this information in a regulatory filing on Sunday (August 18).

Hero said that the company has received an order dated August 17, 2024 for disallowance of input tax credit for the financial year 2019-20. According to the notice, the tax demand is Rs 9,38,66,513, interest is Rs 7,32,15,880 and penalty is Rs 93,86,651.

Tax demand not admissible under law
Hero said that the tax demand based on the company’s assessment is not admissible under the law. The input tax credit rejected by the Delhi GST department officials was correctly claimed as per the provisions of the GST law.

The company will take appropriate action upon filing the appeal
However, it was rejected due to non-compliance by the supplier, which is not attributable to the company. Hero said the company will file an appeal and take appropriate action. There is no impact on the company’s finances, operations and other activities.

The company’s profit increased by 36% in the April-June quarter
Hero Moto Corp has earned a net profit (standalone net profit) of Rs 1,122.63 crore in the first quarter of the financial year 2024-25. It has increased by 36.12% on an annual basis. The company had a profit of Rs 824.72 crore in the same quarter a year ago.

Talking about the standalone revenue from the company’s operations, it was Rs 10,143.73 crore in the April-June quarter. It has increased by 15.69% on an annual basis. In the same quarter a year ago, the company had generated a revenue of Rs 8,767.27 crore. The amount received from selling goods and services is called revenue.

Hero MotoCorp’s total income increased by 15.42%
In the April-June quarter, the total income of Hero Moto Corp Limited increased by 15.42% year-on-year to Rs 10,375.44 crore. In the first quarter of the financial year 2023-24, the company’s income was Rs 8,989.44 crore. At the same time, the total expense of the company during this period was Rs 8,881.99 crore.

Hero Honda Motors Limited was formed in 1984
Hero joined hands with Honda in 1984 and established a new company Hero Honda Motors Ltd. After working together for about 27 years, the two companies separated in 2011.

Hero started a new business under the name HERO MOTOCORP and dropped the Honda brand name and logo. Currently Pawan Munjal is the executive chairman and whole time director of the company.