Maruti Suzuki, a prominent player in the automobile industry, disclosed today that it has received a noteworthy show cause notice from the GST Authority. The notice, totaling Rs 139.3 crore, encompasses proposals for interest, penalties, and the appropriation of previously paid taxes. This development pertains to the issue of tax liability under the reverse charge mechanism for specific services spanning from July 2017 to August 2022.
In an official regulatory statement, Maruti Suzuki elaborated on the situation: "The GST Authority has issued a show cause notice for the period spanning July 2017 to August 2022, wherein they propose to demand interest and impose penalties, while also seeking to appropriate the tax amounting to Rs 139.3 crore. This is in relation to tax liability under the reverse charge mechanism for certain services."
Maruti Suzuki further affirmed its intent to provide a comprehensive response to the adjudicating authority regarding this notice. The company emphasized that this development will not have any adverse impact on its financial standing, operational activities, or other facets of its business.
Additionally, Maruti Suzuki reported a favorable outcome from the High Court of Punjab and Haryana, which dismissed appeals lodged by the Central Excise Department for the period extending from June 2006 to March 2011. These appeals had been filed in response to a tribunal decision made in August 2016, which ruled in favor of Maruti Suzuki, allowing the company to claim input service credit for specific services and dropping penalties.
The company clarified, "The total tax and penalty involved in the department's appeal amounted to Rs 57.2 crore."
Earlier this month, Maruti Suzuki India celebrated a significant milestone with its highest-ever monthly sales volume, achieving a total of 189,082 units in August 2023.
Maruti Suzuki's domestic sales for the month amounted to 158,678 units, encompassing various sub-segment models. This figure includes 1,58,678 units of domestic sales, 5,790 units sold to other OEMs, and 24,614 units exported.
Here is a breakdown of the sales figures for August 2023:
Mini Segment (Alto, S-Presso): 12,209 units
Compact Segment (Baleno, Celerio, Dzire, Ignis, Swift, Tour S, WagonR): 72,451 units
Total Mini + Compact Segment: 84,660 units
Mid-Size (Ciaz): 849 units
Total Passenger Cars (A Segment): 85,509 units
Utility Vehicles (Brezza, Ertiga, Fronx, Grand Vitara, Invicto, Jimny, S-Cross, XL6): 58,746 units
Vans (Eeco): 11,859 units
Total Domestic Passenger Vehicle Sales (PV): 156,114 units
Light Commercial Vehicles (LCV) - Super Carry: 2,564 units
Total Domestic Sales including LCV (PV+LCV): 158,678 units
Sales to Other OEM: 5,790 units supplied to other Original Equipment Manufacturers (OEMs).
Total Domestic Sales (PV+LCV+OEM): 164,468 units
Export Sales: 24,614 units of vehicles exported in August 2023.
Total Sales (Domestic + Export): The overall sales figure for August 2023 reached an impressive 189,082 units.
Maruti Suzuki India Limited's shares have exhibited a robust upward trend in 2023. As of Friday, the company's stock concluded at Rs 10,601.70, marking a 0.33 percent increase compared to the previous day's closing price of Rs 10,566.95.
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