Hero MotoCorp on Tuesday said that it has received a GST demand of ₹456 crore from Rajasthan, with applicable interest thereon by disputing the tax rates on parts and accessories supplied by the company between July 2017 and March 2024.
However, the company said it will take appropriate steps, including filing an appeal since it has rightly classified the parts and accessories based on the General Rules of Interpretation (GRI Rules), relevant sections’ notes, chapter notes, HSN (Harmonised System of Nomenclature) Explanatory notes.
“Therefore, the tax demand is not maintainable in law. However, the tax department has disputed the classification followed by the company,” it said in a filing to the stock exchanges.
Accordingly, the company will take appropriate steps including filing of an Appeal before the appellate authority within the stipulated time and therefore, there was no material impact on financials, operations or other activities of the company, it added.
