Shriram Finance has disclosed receiving an order dated February 26, 2026, from the Additional Commissioner of Central Tax, Secunderabad, imposing significant penalties for the Financial Years 2020-21, 2021-22, and 2022-23. The total tax demand across these three years is approximately ₹8.69 crore, with corresponding penalties levied. The company stated there is no material impact, but is seeking external tax consultation given the quantum involved.
Intimation Regarding Tax Authority Orders
Shriram Finance Limited officially informed the stock exchanges on February 27, 2026, regarding the receipt of an Order dated February 26, 2026, from the Additional Commissioner of Central Tax, Secunderabad GST Commissionerate, Telangana. This order pertains to liabilities under the Central Goods and Service Tax Act, 2017, the TGST Act 2017, and the IGST Act, 2017.
Details of Levied Penalties
The order levies penalties concerning the Financial Years 2020-21, 2021-22, and 2022-23. The key figures are detailed below:
- For F.Y. 2020-21: Penalty of Rs.95,17,242/-.
- For F.Y. 2021-22: Penalty of Rs.1,14,75,442/-.
- For F.Y. 2022-23: Penalty of Rs.6,24,40,095/-.
Grounds for Demand and Penalty
The demand for Tax and Penalties arose due to adjustments related to the Non-Payment of GST based on turnover variations shown in Form GSTR-9C. Additionally, the demand cites the Non-Reversal of ineligible input tax credit availed on goods or services not utilized for business furtherance.
Summary of Tax Demand and Levy
The table below summarizes the demand and penalty levied across the three financial years:
| Particulars | F.Y.2020-21 | F.Y.2021-22 | F.Y.2022-23 |
|---|---|---|---|
| Tax Demand | Rs.93,83,156 | Rs.1,13,42,991 | Rs.6,17,39,837 |
| Penalty Levied | Rs.95,17,242 | Rs.1,14,75,442 | Rs.6,24,40,095 |
Financial and Operational Impact Assessment
The company has explicitly stated that there is no material impact on the financial, operational, or other activities of Shriram Finance based on the quantum of the amount involved. However, as a measure of commercial prudence, the Company is currently awaiting an opinion from its tax consultant regarding the received demand orders, referenced under numbers ZD360226057423H, ZD3602260574378, and ZD3602260574469, all dated February 26, 2026.
Source: BSE
