Hitachi Energy India Faces ₹9.92 Crore GST Demand Over TDS-GST Return Mismatch
Authorities Cite Short Payment of Tax and Input Credit Issues
Company Calls Order Arbitrary, Plans to Appeal
By Our Legal Correspondent
New Delhi: December 13, 2025:
In a significant development, Hitachi Energy India Ltd, a leading power technology company, has received a tax demand order of ₹9.92 crore from the Uttar Pradesh GST authorities. The order, issued on December 10, 2025, alleges discrepancies between the company’s Tax Deducted at Source (TDS) returns and its GST filings, along with irregularities in input tax credit (ITC) claims.
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The company has strongly contested the order, calling it unsustainable in law and has announced plans to file an appeal before the Appellate Authority.
Background of the Case
- Audit Findings: The GST audit for FY 2021-22 revealed alleged short payment of tax on outward supplies.
- Discrepancies: Authorities claim there were mismatches between values declared in TDS returns and GST returns.
- Input Tax Credit Issues: The order also cites incorrect ITC claims on cancelled documents.
- Demand Details:
- ₹9.02 crore in GST
- ₹90.21 lakh in penalties
- Additional interest (unquantified)
The order was disclosed by Hitachi Energy India under Regulation 30 of SEBI Listing Regulations, 2015, as required for listed companies.
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Company’s Response
Hitachi Energy India has disagreed with the GST order, stating:
- The demand is arbitrary and unjustified.
- The company has complied with all legal requirements.
- It will challenge the order before the Appellate Authority.
The company emphasized that it remains committed to full compliance with tax laws and will pursue legal remedies to protect its interests.
Legal and Business Implications
This case highlights several important issues:
- GST-TDS Reconciliation Challenges: Many companies face difficulties reconciling values between TDS returns filed under the Income Tax Act and GST returns filed under the GST regime.
- Compliance Burden: The case underscores the growing compliance burden on corporates, especially multinational firms operating in India.
- Investor Concerns: As a listed entity, Hitachi Energy India’s disclosure of the order is crucial for transparency. Investors will closely watch the outcome of the appeal.
- Precedent Setting: The case may set a precedent for how authorities handle mismatches between different tax filings.
Expert Views
Tax experts believe this case reflects a larger trend of aggressive GST audits by state authorities. They argue that:
- Minor mismatches between TDS and GST returns should not automatically lead to heavy penalties.
- Companies need better systems to reconcile data across tax regimes.
- Courts and appellate authorities will play a key role in balancing revenue interests with fairness.
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Wider Context
India’s GST regime has been under scrutiny for its complex compliance requirements. Businesses often face challenges due to:
- Multiple return filings.
- Frequent changes in rules.
- Differences between direct tax (TDS) and indirect tax (GST) reporting.
This case adds to the growing debate on whether GST authorities are being too aggressive in enforcement, potentially discouraging investment.
Conclusion
The ₹9.92 crore GST demand against Hitachi Energy India is not just a corporate tax dispute—it is a test case for how India’s tax system handles data mismatches across regimes. While the authorities insist on strict compliance, the company argues that the order is unjustified.
The outcome of the appeal will be closely watched by corporates, investors, and tax professionals, as it may shape future enforcement trends in India’s GST framework.
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