Maruti Suzuki Faces Rs 38.4 Crore GST Demand, Plans Appeal

• Haryana GST Authority issued an adjudication order to Maruti Suzuki India Limited for a tax demand of Rs 38.4 crore.
• The demand is for the period April 2019 to March 2024, related to alleged GST liability on tax credit notes, with an equivalent penalty and interest.
• Maruti Suzuki plans to challenge the order by filing an appeal before the first appellate authority.
• The company stated that this development is unlikely to have a material impact on its financials or operations.
• Separately, Maruti Suzuki also received a draft income tax assessment order for FY 2022–23 proposing additions of Rs 5786.4 crore, which it will contest.

Key Questions Answered

Will Maruti Suzuki's legal challenges impact its expansion plans?

Maruti Suzuki stated that a Rs 38.4 crore GST demand is unlikely to materially impact its financials or operations.

How will the tax demands affect Maruti Suzuki's profitability?

Maruti Suzuki will challenge a Rs 38.4 crore GST demand and a Rs 5,786.4 crore Income Tax draft order.

What is the future outlook for Maruti Suzuki's production capacity?

Maruti Suzuki plans to add 2.5 lakh units of annual production capacity by 2029 with a Rs 10,189 crore investment in a new Gujarat plant.