Hyundai India Hit with ₹517 Cr Tax Demand Over SUV Cess Dispute

has received a ₹517.34 crore tax demand from the GST authorities, which includes ₹258.67 crore in compensation cess and an equal penalty. The case relates to the alleged underpayment of GST compensation cess on select SUV models sold between September 2017 and March 2020. This cess, meant for luxury goods like SUVs, helps offset state revenue losses under the GST framework. The order was issued by the Commissioner (Appeals) – GST & Central Excise, Tamil Nadu, and reached the company on July 21. Hyundai has stated it will challenge the decision, citing that previous amendments and clarifications by the CBIC support their stance. While the demand is significant, the company has clarified that there’s no immediate financial or operational impact. From a compliance and investor standpoint, this highlights the ongoing tax clarity challenges some auto manufacturers continue to face under evolving GST norms. Follow me for more such updates, Thank You! Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.