The audit, covering the 2019-20 financial year, identified alleged violations including irregular input tax credits, non-payment of GST on outgoing electronic waybills and misclassification of taxable supplies as zero-rated exports.
The tax demand stems from several key issues identified during the GST audit for the financial year 2019-20. The authorities found irregularities such as alleged misuse of input tax credit, especially in cases where payments were not made within the 180-day period stipulated under the Karnataka GST Act, 2017.
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In addition, the audit highlighted instances where GST was not paid on outgoing electronic waybills and where certain taxable supplies were incorrectly classified as zero-rated exports without payment of tax.
The audit also highlighted another major concern: alleged misuse of input tax credit in transactions involving ABB India Ltd, where goods were not actually supplied. The audit also noted discrepancies in the classification of some transactions as non-GST supplies, which contributed to the overall tax claim.
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 permitted time. The company attributes the delay in responding to the need for a detailed review of the order.
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Shares of Hitachi Energy India Ltd closed at ₹11,662.00, down ₹223.60, or 1.88 per cent, on the Bombay Stock Exchange.
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