Hitachi Energy faces ₹46.29 crore tax demand following GST audit for FY 2019-20

Hitachi Energy India Ltd on Tuesday (September 3) said it has received a tax demand totalling ₹46.29 crore following an audit conducted by the Assistant Commissioner of Commercial Taxes (Audit). The demand comprises ₹24.41 crore in GST, ₹19.43 crore in interest, and ₹2.44 crore in penalties.

The audit, covering the financial year 2019-2020, identified alleged violations, including irregular input tax credit availed, non-payment of GST on outward e-waybills, and misclassifying taxable supplies as zero-rated exports.

The tax demand stems from several key issues identified during the GST audit for FY 2019-20. The authorities found irregularities such as the alleged improper availing of input tax credit, particularly in instances where payments were not made within the 180-day window as mandated by the Karnataka GST Act, 2017.

Additionally, the audit highlighted instances where GST was reportedly not paid on outward e-waybills and where certain taxable supplies were incorrectly classified as zero-rated exports without tax payment.

Another significant concern raised in the audit was an alleged wrongful availment and utilisation of input tax credit in transactions involving ABB India Ltd, where goods were reportedly not actually supplied. The audit also noted discrepancies in the classification of certain transactions as non-GST supplies, which contributed to the overall tax demand.

Hitachi Energy maintains that it has complied with the Karnataka GST Act, 2017, and plans to appeal the order before the appellate authority within the permissible timeframe. The company attributes the delay in response to the necessity of a detailed review of the order.

Source: CNBC TV18