Pricol gets notice from GST Intelligence, faces potential demand of Rs 380 cr
Pricol has received a showcause notice from the Directorate General of GST Intelligence, Gurugram Zonal Unit, which could lead to a tax demand of Rs 380 crore plus interest and penalty.
Pricol is a leading manufacturer of instrument clusters. According to an exchange filing, the notice was received "as part of an industry-wide Goods and Services Tax (GST) investigation, concerning classification of instrument clusters".
While the company's way of classification would lead to a tax rate of 18 percent, the department's method would lead to a tax rate of 28 percent.
The exchange filing said that the company is not the only one facing such a demand from the department. It added that "proceedings have been initiated by the Department against various auto component manufacturers engaged in the supply of instrument clusters."
