Hyundai Motor India Ltd (HMIL) has recently received a show-cause notice from the Maharashtra State Tax Authority. The notice, dated November 25, 2024, concerns alleged discrepancies in the company’s input tax credit (ITC) claims for the financial year 2020-21.
The tax authority has alleged that Hyundai claimed “excess ITC in GSTR 3B/9, which is not confirmed in GSTR 2B/8A of GSTR 9, along with RCM tax paid by the company.” The total demand outlined includes ₹2.741 crore towards tax and an additional ₹2.279 crore as interest.
In response to the notice, Hyundai Motor India clarified in a regulatory filing with the National Stock Exchange (NSE) and BSE under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that it would respond within the prescribed timelines.
The company emphasised that the issue relates to routine compliance and assured stakeholders that the matter would be addressed through the appropriate adjudicating authority.
Furthermore, Hyundai confirmed that the notice would not impact its financial, operational, or other activities. The company highlighted its commitment to fulfilling regulatory requirements and maintaining compliance with tax authorities.
In a separate update on its financial performance, Hyundai reported a decline in its July-September 2024 quarter earnings. Net profit dropped by 16% to ₹1,375 crore, while revenue fell by 8% to ₹17,260 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) decreased by 10% to ₹2,205 crore, and the EBITDA margin narrowed slightly to 12.8% from 13.1% during the same period.
In addition to addressing compliance concerns, Hyundai is advancing its efforts in sustainable energy solutions. The company is collaborating with IIT Madras and the Tamil Nadu government on a project aimed at reducing the cost of green hydrogen production. It has committed ₹100 crore towards this initiative, which includes establishing an innovation hub in Tamil Nadu.
Moreover, Hyundai is expanding its presence in the electric vehicle (EV) market. The company plans to launch the Creta EV in Q4FY25 (January-March 2025).