M&M Faces Rs 14.3 Lakh Penalty for a tax credit claim; a regulatory notice is issued
- ByStartupStory | August 19, 2023
Mahindra & Mahindra Ltd. has recently been slapped with a penalty exceeding Rs 14.3 lakh for inaccurately claiming input tax credit during the transition from the excise system to the GST framework. This lapse pertains to the previously independent entity, Mahindra Vehicle Manufacturers Ltd, which has since been amalgamated into Mahindra & Mahindra Ltd.
In a regulatory filing, the company said, based on its assessment, prevailing law, and the advice of the council, it is hopeful of a favorable outcome at the appellate level.
“The company has received an order from the Joint Commissioner, CGST and Central Excise, Pune-I Commissionerate, imposing a penalty of Rs 14,31,571 under applicable provisions of the CGST Act, 2017 about erstwhile Mahindra Vehicle Manufacturers Ltd. (MVML),” the filing said.
It further said, “The order has been passed on the basis that incorrect input tax credit (ITC) has been availed during the transition from excise regime to GST regime by MVML, and the authority has ordered for recovery of the same along with interest.”
It further said, “The order has been passed on the basis that incorrect input tax credit (ITC) has been availed during the transition from excise regime to GST regime by MVML, and the authority has ordered for recovery of the same along with interest.”
The order in question, dated July 20, 2023, was officially received by the company on August 17, 2023. Mahindra & Mahindra Ltd. adds, “Drawing from our internal analysis, prevailing legal frameworks, and legal advice, we hold a positive outlook for a favorable resolution at the appellate level.” The company goes on to mention that it does not anticipate the order having any noteworthy financial ramifications.
In essence, Mahindra & Mahindra Ltd. finds itself in a penalty situation due to incorrect input tax credit assertions during the shift from the excise regime to the GST structure, with the company expressing confidence in its ability to secure a favorable outcome through the appeals process.
Follow Startup Story
Related Posts
