Mahindra Two Wheelers receives tax notice worth ₹4.11 crore

Mahindra & Mahindra in a regulatory filing said that it has received an order from the office of the Deputy Commissioner, State Tax, Audit Wing, Indore, Madhya Pradesh. A total penalty amount of 4,11,50,120 has been slapped on the MTWL, stated the regulatory filing. The penalty is related to the MTWL, which was responsible for the automaker’s two-wheeler business and later merged with the company.

The regulatory filing further stated that one of the reasons for imposing the penalty is that the basis of the invoice on which input tax credit has been claimed by MTWL is not reported by vendors in GST returns and this does not appear in auto-populated GSTR-2A. The filing also stated that another reason behind the tax penalty is that the carry forward of the Education Cess credit balance from the pre-GST regime is not allowed under the GST regime.

Mahindra & Mahindra has further stated that it will file an appeal against the penalty to the appellate authority and is hopeful about a favourable outcome. “An appeal will be filed and the company is hopeful of a favourable outcome at the appellate level and does not reasonably expect the said order to have any material financial impact on the company,” reads the filing.

The regulatory filing issued on Friday came on the heels of the order from the office of the Assistant Commissioner, Division-IV, CGST & Central Excise, Ahmedabad South imposing a penalty amounting to 56,04,246, which was again in relation to the company’s two-wheeler business under the MTWL.

First Published Date: 30 Dec 2023, 12:10 PM IST

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