Hyundai Motors India Share Price in Focus on Tax Penalty Order of ₹517 Crore from GST Authority

Hyundai Motor India Ltd (HMIL) has been served a significant tax demand totalling ₹517.34 crore by the Goods and Services Tax (GST) authority. The order was issued by the Commissioner (Appeals), CGST Department, Tamil Nadu, and includes both tax and penalty components relating to compensation cess on SUV models. The demand pertains to the period between September 2017 and March 2020.

Tax and Penalty Details

The regulatory filing by the company on 22nd July 2025 confirms that the GST authority has raised a demand for ₹258.67 crore as compensation cess and an equivalent penalty amount of ₹258.67 crore, bringing the total to ₹517.34 crore. The allegation centres on the short payment of GST compensation cess levied on certain SUV models manufactured by Hyundai Motor India during the specified period.

Company's Response and Legal Standpoint

In response to the order, a Hyundai Motor India spokesperson stated, "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." 

The company also clarified that the order has no bearing on its financial position, operations, or other business activities and confirmed its intent to appeal the decision.

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Hyundai Motor India Share Price Performance 

As of July 23, 2025, at 9:40 AM, Hyundai Motor India share price is trading at ₹2,124 per share, reflecting a gain of 0.42%. Over the past month, the stock has gained by 6.22%.

Conclusion

While the ₹517.34 crore tax and penalty demand marks a serious allegation concerning historical cess payments, Hyundai Motor India remains confident in its legal position. The automaker has asserted that CBIC clarifications favour its case and intends to pursue appropriate legal remedies.

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