Tax Tangle: Maruti Suzuki Hit With ₹4.3M GST Penalty

Maruti Suzuki India Limited has received an adjudication order from the West Bengal GST Authority imposing a tax demand and penalty of ₹4.33 million each. The order relates to GST credit claims between April 2018 and March 2023. The automaker plans to appeal against the decision.  

On December 18, 2025, Maruti Suzuki confirmed receipt of the adjudication order concerning GST credit availment. The order includes both a tax demand and penalty, totaling ₹8.66 million. The company stated it will file an appeal, emphasizing its commitment to compliance while contesting the authority’s interpretation. This development highlights the increasing scrutiny on GST credit claims and the challenges faced by large corporates in navigating India’s evolving tax framework.  

Notable updates  
• West Bengal GST Authority issued adjudication order on December 18, 2025  
• Tax demand: ₹4.33 million; Penalty: ₹4.33 million  
• Period covered: April 2018 to March 2023  
• Maruti Suzuki intends to appeal against the order  
• Case underscores compliance challenges in GST credit claims  

Major takeaway  
The penalty reflects heightened regulatory oversight in India’s GST regime, signaling the need for corporates to strengthen compliance and documentation practices to avoid disputes.  

Sources: InvestyWise, Economic Times, Moneycontrol