Maruti Suzuki gets show cause notice from GST Authority

Maruti Suzuki India announced on Friday that it had received a show-cause notice from the GST Authority, which proposed to appropriate the tax that had already been paid in the sum of Rs 139.3 crore, demand interest, and impose a penalty. In a regulatory filing, Maruti Suzuki India stated that the notification relates to the issue of tax liability under the reverse charge basis on specific services for the period of July 2017 to August 2022.

In a regulatory filing, Maruti Suzuki India stated that the notification relates to the issue of tax liability under the reverse charge basis on specific services for the period of July 2017 to August 2022. 

“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.

A favourable ruling dismissing appeals brought by the Central Excise Department for the time period of June 2006 to March 2011 was issued by the High Court of Punjab and Haryana, the company added. According to the application, the Central Excise Department appealed an earlier tribunal judgement from August 2016 that had ruled in the company's favour and enabled it to receive input service credit for some services while also having penalties against it lifted.