Hero MotoCorp : Hero MotoCorp has received a notice from Delhi GST officials demanding a tax of over Rs 17 crore. The two-wheeler maker said in a stock exchange notice on Sunday that the company has received an order dated August 17, 2024, from the office of the GST (Goods and Services Tax) officer of the Delhi government in the matter of disallowance of input tax credit for the financial year 2019-20.

How much money is demanded

According to the notice, a demand of Rs 9,38,66,513 has been made as tax. Apart from this, a demand of Rs 7,32,15,880 has been made as interest and Rs 93,86,651 as a penalty. According to the company, the tax demand based on its assessment is not worth considering under the law.

what the company said

Hero MotoCorp said that the company's claim of input tax credit is by GST provisions. However, it has been rejected due to non-compliance of the supplier and the company is not responsible for this. The company will take appropriate steps including filing an appeal in the matter. Hero MotoCorp said that this has not affected the company's financial, operational, or other activities.

Financial performance of the company

Hero MotoCorp announced a standalone net profit of Rs 1,123 crore for the quarter ended June 30, 2024, up 36 percent from Rs 825 crore recorded in the same period last year. The company's operational revenue in the quarter was Rs 10,144 crore, up 16 percent from Rs 8,767 crore in the same quarter of the previous fiscal. Meanwhile, EBITDA margin increased over the previous year, reaching 14.4 percent.