After Volkswagen, Hero MotoCorp is the latest automaker in India to come under tax scanner. The largest two-wheeler manufacturer in the country has been slapped with a notice by the Rajasthan GST council with a demand for Rs 456 crore. GST penalty on Hero MotoCorp Through a regulatory corporate filing, Hero MotoCorp has revealed that the company has received an order from the Additional Commissioner, Central Goods and Services Tax (GST), Alwar, Rajasthan, imposing a penalty of Rs 456.06 crore under Section 74 of the Central Goods and Service Tax Act, 2017 along with an equivalent amount of GST and applicable interest thereon by disputing the tax rates on the parts and accessories supplied by the company during the period July 2017 to March 2024. In addition to this, Hero MotoCorp has been served with a notice imposing a penalty of Rs 8.50 crore by the Rajasthan GST council disputing the tax rates on the parts supplied by the Company for after-sales during the period July 2017 to March 2021. Based on its internal assessments, the company is not liable to the demands of any penalty stating the “tax demand is not maintainable in law under both the orders.” Hero MotoCorp will accordingly take its next steps which includes filing of appeals before the appellate authority within the stipulated time. Therefore, there is no material impact on financials, operations or other activities of the company.