News of Saturday, 30th September 2023
Show-cause notice of Rs 139.3 crore by GST authority to Maruti Suzuki
The company says… We’ll respond
New Delhi, 30: Car company Maruti Suzuki India has received a show cause notice from the GST authority. The company said the notice was issued to recover tax already paid, demand interest and levy penalty. A total of Rs 139.3 crore has been demanded in the notice.
Maruti Suzuki India told the stock market that the notice relates to tax liability on certain services from July 2017 to August 2022 on a ‘reverse charge’ basis. Reverse charge means that the liability to pay tax in respect of prescribed categories of supplies rests with the recipient of supply of goods or services rather than the supplier of such goods or services. The company stated that the notice has not affected its financial, operational or other benefits and will file a reply to the notice.
Let us tell you that for some time now, global demand notices are being sent to companies in various sectors. Recently, ICICI Lombard General Insurance was fined Rs. 1,728 crore ‘Demand Notice’ has been sent. Similarly, many online gaming app companies have also received notices. Mobile app-based sports platform Dream 11 has appealed against the GST notice in the Bombay High Court.