SMR Automotive Systems India Limited, a subsidiary of Motherson, has received a new order. The details of the order are not fully disclosed in the announcement but the company has been issued a penalty order regarding IGST ITC and other tax-related issues totaling INR 37,63,265. The company intends to appeal the order.
Tax Penalty Order Received
SMR Automotive Systems India Limited, a wholly owned subsidiary of Motherson, has received a penalty order from the Commercial Tax Officer, Kancheepuram (Rural), Tamil Nadu. The order was issued on December 13, 2025.
Details of the Penalty
The penalty order is mainly related to issues concerning IGST ITC on import not appearing in 2A/2B, non-payment of tax due to non-submission of BRC/FIRC related to service income, absence of proper linkage of debit and credit notes with corresponding original invoices, and non-consideration of export sales as zero-rated supplies due to non-submission of shipping bills.
Financial Impact and Response
The total penalty levied amounts to INR 37,63,265. According to the announcement, there is no material impact on financials or on operations or other activities of the Company. SMR Automotive intends to appeal against the order within the statutory timeline.
Source: BSE
