Mahindra & Mahindra Ltd on Thursday said it has been imposed a penalty of over Rs 56 lakh for wrongly carrying forward input service distributor credit available in pre-GST into GST regime with regards to its two-wheeler business.
“The company received an order from the Office of the Assistant Commissioner, Division-IV, CGST & Central Excise, Ahmedabad South imposing a penalty u/s 74 of CGST Act, 2017 amounting to Rs 56,04,246 in relation to the two-wheeler business of Mahindra Two Wheelers Limited (MTWL), which was demerged from MTWL and has since been merged with the company,” Mahindra & Mahindra said in a regulatory filing.
The order has been passed on the basis that closing balance of Input Service Distributor (ISD) credit available in pre-GST regime was wrongly carried forward into GST regime, it added.
The company further said based on its assessment, an appeal will be filed and it 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”.
(With PTI Inputs)
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