Muthoot Finance has announced a significant resolution concerning a prior Goods and Service Tax (GST) demand. Following a Writ Petition filed in the High Court, the Assistant Commissioner, Central GST Division I Noida, passed a rectification order on March 24, 2026. This order effectively reduces the total aggregated tax demand and penalty of Rs. 1,91,46,142/- to NIL. The company confirmed there is no material financial impact from this resolved matter.
Resolution of Past Tax Matter
Muthoot Finance Limited formally disclosed an important update regarding a previous tax assessment concerning the Central Goods and Service Tax (CGST) authorities in Noida, Uttar Pradesh. The company had previously intimated a tax demand and penalty aggregating to Rs. 1,91,46,142/- on September 13, 2025.
Favorable Rectification Order
Through an order dated March 24, 2026, the Office of the Assistant Commissioner, Central GST, Division I Noida, passed a rectification order. This order, which resulted from a Writ Petition filed by the company with the Hon’ble High Court of Judicature at Allahabad, effectively reduces the entire previous demand and penalty to NIL.
Details of Previous Allegations
The Annexure A confirmed the specific details related to the initial allegations that led to the demand:
- Input Tax Credit (ITC) Reversal: Reversal amounting to Rs. 95,70,326/- concerning supplies where registration was allegedly cancelled retrospectively.
- Ineligible ITC: Ineligible Input Tax Credit related to Debit Notes from suppliers who had not filed GSTR-3B, amounting to Rs. 2,745/-.
Financial and Operational Impact
Crucially, the company stated that there are no material impact on financial, operation or other activities of the Company quantified in monetary terms resulting from this rectified order.
Source: BSE
