New Delhi, January 28, 2025 – Maruti Suzuki India Limited (NSE: MARUTI, BSE: 532500) has disclosed that it has received an adjudication order from the Gujarat GST Authority, imposing a ₹5.39 crore demand, including penalty and interest, due to input tax credit (ITC) denial on certain services.
Key Details of the GST Order
| Parameter | Details |
|---|---|
| Issuing Authority | Gujarat GST Authority |
| Date of Order Receipt | January 27, 2025 |
| Tax Demand Amount | ₹5.39 crore |
| Period Under Review | July 2017 – March 2023 |
| Reason for Demand | ITC denial on certain services |
| Penalty Imposed | ₹5.39 crore |
Company’s Response & Next Steps
Maruti Suzuki has stated that it intends to file an appeal against the order with the first appellate authority, as it does not agree with the ITC disallowance decision.Financial & Operational Impact
The company has clarified that the GST demand will not have a material impact on its financials, operations, or other business activities.Investor Outlook
- Regulatory Scrutiny on ITC Claims: The case underscores strict tax compliance measures imposed by state GST departments.
- No Immediate Financial Risk: Maruti Suzuki’s strong balance sheet minimizes any adverse effect from the demand.
- Legal Proceedings Expected: Investors will watch for updates on the company’s appeal and potential tax adjustments.