Shriram Finance has received an order from the Commercial Tax Officer in Chennai, levying a penalty of ₹24,06,19,502 for fiscal year 2019-2020. The penalty relates to discrepancies under the Central Goods and Service Tax Act, the Tamil Nadu Goods and Service Tax Act, and the Integrated Goods and Services Tax Act. The company is planning to file a rectification application to address arithmetical errors in the order.
Penalty Imposed
Shriram Finance has been notified of a penalty totaling ₹24,06,19,502 by the Office of the Commercial Tax Officer, Chennai South. The order, dated January 23, 2026, pertains to fiscal year 2019-2020.
Tax Act Violations
The penalty is associated with Section 74 of the Central Goods and Service Tax Act, 2017, the Tamil Nadu Goods and Service Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017.
Details of the Demand
The tax demand has arisen primarily from:
- Disallowance of input tax credit taken on payment of Reverse Charge Mechanism (RCM).
- Excess Input tax credit claimed in GSTR-3B.
- Credit note issued.
In addition to the penalty, Shriram Finance faces interest charges of ₹12,01,51,803.
Company Response
Shriram Finance acknowledged there is no material financial or operational impact. The company intends to file a rectification application under Section 161 of the CGST Act, 2017, to correct any arithmetical or clerical errors present in the order.
Source: BSE
