22-07-2025
- Automotive
- Business Upturn
Hyundai Motor India receives GST order of Rs 517.34 crore for alleged short payment on SUVs
By Aditya Bhagchandani Published on July 22, 2025, 17:37 IST
Hyundai Motor India Limited informed the exchanges that it 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 amount of penalty, bringing the total to approximately ₹517.34 crore.
According to the company's regulatory filing under Regulation 30 of SEBI LODR, the order pertains to an alleged short payment of GST Compensation Cess on certain SUV models sold between September 2017 and March 2020.
The order was received via email on 21 July 2025 at 6:40 PM, from the Office of the Commissioner of GST & Central Excise (Appeals – II), Tamil Nadu. Key details of the order: Particulars Details Authority Office of the Commissioner of GST & Central Excise (Appeals – II), Tamil Nadu Nature of Order Confirmation of GST Compensation Cess demand Amount of Demand ₹258.67 crore Penalty ₹258.67 crore Total ₹517.34 crore Period in question September 2017 – March 2020 Allegation Short payment of GST Compensation Cess on certain SUV models
The company stated that there is no impact on its financial, operational, or other activities at present due to this order and confirmed that it is reviewing the order and will exercise its right to file an appeal.
This move comes amid heightened scrutiny of the automotive sector over classification and cess rates applicable to vehicles sold during the initial GST regime years.
Hyundai reiterated its commitment to comply with applicable laws and stated it remains confident about its position on the matter.
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Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
