Shriram Finance has received orders regarding GST discrepancies. Penalties of Rs. 14,90,328 and Rs. 1,632 were levied concerning show cause cum demand notices against Shriram City Union Finance Limited. The penalties relate to the 2018-19 and 2019-20 financial years in West Bengal. The company is evaluating its options and will comply with the orders.
GST Penalty Details
Shriram Finance has been notified of penalties related to GST matters for the financial years 2018-19 and 2019-20. The penalties are associated with the erstwhile Shriram City Union Finance Limited, now amalgamated with Shriram Finance Limited effective April 1, 2022. The penalties were imposed by the Superintendent of CGST & Central Excise Range-I, Durgapur-I Division.
Specific Penalty Amounts
The orders impose penalties amounting to Rs. 14,90,328 and Rs. 1,632. These are related to show cause cum demand notices regarding GST and Service Tax Act, 2017/WBGST Act, 2017.
Breakdown of Larger Penalty
The penalty of Rs. 14,90,328 relates to GST credit disallowance. The GST credit amount includes Rs. 58,612 (IGST), Rs. 7,15,858 (CGST), and Rs. 7,15,858 (SGST), plus applicable interest. The penalty of the same amount has also been levied.
Breakdown of Smaller Penalty
The penalty of Rs. 1,632 relates to irregular utilization of Input Tax Credit. This includes Rs. 816 (CGST) and Rs. 816 (SGST), along with applicable interest. The penalty of the same amount has also been levied.
Company’s Stance
Shriram Finance has decided to comply with the order and pay the penalties. The company does not anticipate a material impact on its financial operations or other activities.
Source: BSE
