The famous Indian multinational automotive manufacturing company, Mahindra and Mahindra received Rs 56 lakhs penalty alleging that the input service distributor (ISD) credit in pre-GST regime wrongly carried forward into GST regime.
The penalty, imposed by the office of the Assistant Commissioner, Division-IV, CGST & Central Excise, Ahmedabad South, amounts to Rs 56,04,246. This pertains specifically to Mahindra Two Wheelers Ltd (MTWL), previously demerged and subsequently amalgamated with M&M, as stated in the regulatory filing by Mahindra & Mahindra.
The order was passed based on the finding that the closing balance of ISD credit in the pre-GST regime was erroneously transferred to the GST regime. The penalty has been imposed by the office of the Assistant Commissioner, highlighting the importance of compliance with the GST regulations.
“Based on our assessment, an appeal will be filed, and we are hopeful of a favourable outcome at the appellate level. We do not reasonably expect the said order to have any material financial impact on the company” the company highlighted.
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