Motherson has received a penalty order related to non-payment of Goods & Service Tax (GST) on guarantee commission disclosed in consolidated financial statements for the year 2021-22. The order, issued on November 4, 2025, involves corporate guarantees provided by the Company to its subsidiaries. Motherson intends to appeal against the order in the Tribunal/Court within the specified statutory timeline.
Details of Penalty Order
Motherson has been issued a penalty order pertaining to the non-payment of Goods & Service Tax (GST) on guarantee commission. This commission relates to corporate guarantees provided to wholly-owned subsidiaries and was disclosed in the consolidated financial statements for the fiscal year 2021-22.
Financial Impact and Response
The penalty order, received on November 4, 2025, specifies a penalty of INR 38,82,240/-. According to the announcement, the company intends to file an appeal against this order in the appropriate Tribunal/Court within the statutory timeline.
Company’s Position
Motherson clarifies that it had previously discharged the applicable GST under the Uttar Pradesh GST registration. This aligns with the place of issue of the corporate guarantee, in accordance with the GST Act, 2017. The company maintains that no further GST or penalty is applicable. However, they will appeal the issued order.
The company assesses that there will be no material impact on the financials or operations of the organization as a result of this order. They have already addressed the GST liability under a different GST registration.
Source: BSE
