NEW DELHI— Hyundai Motor India Limited (HMIL) has been issued a ₹258.67 crore penalty by the Goods and Services Tax (GST) and Central Excise authorities for allegedly underpaying compensation cess on certain SUV models sold between September 2017 and March 2020, the company confirmed on Tuesday.
In addition to the penalty, the same amount—₹258.67 crore—has been confirmed as the cess shortfall, bringing the total tax demand to over ₹517 crore, according to Hyundai’s filing with the stock exchange.
“The company has received an order from the Commissioner (Appeals), CGST Department, Tamil Nadu, confirming a GST compensation cess demand of ₹258.67 crore along with an equal penalty,” HMIL stated. “The demand pertains to alleged short payment of GST compensation cess on certain SUV models for the period September 2017 to March 2020.”
The order was issued by the Office of the Commissioner (Appeals – II) of the CGST Department in Tamil Nadu on July 21.
Hyundai did not specify which SUV models are under scrutiny in the regulatory filing.
Despite the substantial tax demand, HMIL emphasized that the order will not impact the company’s financial, operational, or business activities. “The company is reviewing the order and will exercise its right to file an appeal,” the filing added.
A Hyundai spokesperson stated that the company believes its position is supported by recent amendments and clarifications issued by the Central Board of Indirect Taxes and Customs (CBIC). “We are in the process of reviewing the order and will seek a legal remedy through an appropriate forum,” the spokesperson said.
Currently, HMIL offers a wide range of SUV models in India, including the Exter, Venue, Creta, Alcazar, Tucson, Creta Electric, and Ioniq 5. The penalty pertains to past sales and is not expected to affect Hyundai’s current or future vehicle lineup. (Source: IANS)
