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 present impact on its financial or operational activities and confirmed that it is reviewing the order and will exercise its right to file an appeal.
HMIL Spokesperson’s comment: “HMIL is of the view that the amendment and the clarifications given by the Central Board of Indirect Tax and Customs (CBIC) to resolve the issue faced by the industry on this matter are in favour of the company. We are in the process of reviewing the order and will exercise the right to seek a legal remedy through an appropriate forum.”
This development comes amid ongoing scrutiny in the auto industry over cess classifications applicable to vehicles sold in the early years of the GST regime. Hyundai reaffirmed its commitment to legal compliance and expressed confidence in its legal position.
