Mahindra Logistics Faces Rs 1.57 Crore GST Penalty Over Excess Input Tax Credit Claim

Mahindra Logistics, an integrated logistics and mobility solutions provider, has received a GST order from the Uttarakhand tax authorities imposing a Rs 1.57 crore penalty. The order relates to the alleged excess input tax credit claimed by the company.

Background of the Case

The GST department claims that Mahindra Logistics has claimed excess ITC for the financial year 2020-21. Therefore, the authority has issued an order raising demand, penalty and interest with respect to a GST assessment conducted under the relevant provisions of the Uttarakhand GST Act 2017, CGST Act 2017 and IGST Act 2017.

Key Detail of Order

Company’s Response

In its regulatory filing, Mahindra Logistics said that based on its assessment and legal advice received, the company expects a favorable outcome at the next adjudicating authority or the tribunal level.

Financial Impact

The company has said that it does not expect any significant impact of the order on the financials or operations of the company. Further, the tax demand, interest and penalty will be classified as contingent liabilities of the company’s financial statement.

Disclosure Compliance

This disclosure was made by Mahindra Logistics Limited to both stock exchanges, NSE and BSE, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.