Quick Summary
Several top automakers, including Mahindra, Tata Motors, Hyundai, and Maruti, have received tax notices for unpaid compensation cess on utility vehicles sold prior to 2022. Popular models like Mahindra's Thar and Scorpio, Tata Motors' Safari and Harrier, Hyundai's Creta, and Maruti's Brezza are among the vehicles involved. The total liability for the automotive industry is estimated to be around Rs 10,000 crore, according to sources. These notices were issued by CGST offices across various juri
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FAQ :
Mahindra, Tata Motors, Hyundai, and Maruti are among the carmakers that have received tax notices.
The total estimated liability for the automotive industry is around Rs 10,000 crore.
The notices concern utility vehicles, including popular models like Mahindra's Thar and Scorpio, Tata Motors' Safari and Harrier, Hyundai's Creta, and Maruti's Brezza.
Carmakers believe the clarification of the compensation cess rules in 2022, which is being applied retroactively, is unfair and places an unrecoverable financial burden on them.
The government maintains that utility vehicles are subject to a 28% GST along with a 22% compensation cess, and that the 2022 clarification merely clarified existing provisions, not introduced new taxes.
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