Mahindra & Mahindra on Friday said it has been slapped with a penalty of Rs 4.12 billion for carrying forward input tax credit claims and education allowance balances related to its two-wheeler business from pre-GST regime to GST regime.
Mahindra & Mahindra, in a regulatory filing, said it has received orders from the Office of Deputy Commissioner, Tax Audit Department, Madhya Pradesh, Indore-01, to impose penalty amounting to Rs 4,115,012 crore on two-wheelers. . It is a business of Mahindra Two Wheelers Ltd (MTWL), which was separated from MTWL and subsequently merged with the Company.
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One of the reasons for imposing the penalty is that “the invoice base for which Input Tax Credit (ITC) is claimed by MTWL is not reported by the vendor in the GST return and therefore does not appear in the auto-populated GSTR-2A.” That’s it.
Another reason is that “carryover of education tax credit balance from before the GST system to the GST system is not allowed”.
Based on its assessment, M&M concluded that “although an appeal will be filed and the Company expects a favorable outcome at the appellate level, there is no reasonable expectation that the order would have a material financial impact on the Company.” I didn’t expect that.”
The company on Thursday announced that it has received an order from the Office of Deputy Commissioner, Division IV, South CGST, Central Excise, Ahmedabad, to impose a penalty amounting to Rs 5,604,246 in respect of MTWL’s two-wheeler business.