“HMIL is of the view that the amendment and the clarifications given by the Central Board of Indirect Tax and Customs (CBIC) to resolve the issue faced by the industry on this matter are in favour of the company. We are in the process of reviewing the order and will exercise the right to seek a legal remedy through an appropriate forum,” said the HMIL spokesperson.
Last year it was reported that carmakers in India have received notices totalling between Rs 8,000 crore and Rs 10,000 crore for failing to pay compensation cess levied under the GST on utility vehicles. Sources said the GST authority has issued notices to the majority of carmakers for non-payment of cess from the financial year 2018 to 2022 on SUV sales.
SUVs attract a GST rate of 28% and an additional compensation cess of 22%, depending on engine capacity, overall length, and ground clearance.
