Minda Corporation's Subsidiary Faces GST Penalty of Rs 4,75,88,732

Minda Corporation Ltd. has received an order from the Joint Commissioner of GST & Central Excise, Chennai-Outer, Tamil Nadu, under the Central Goods and Services Tax Act 2017 (CGST Act 2017) and Tamil Nadu Goods and Services Tax Act 2017 (TNGST Act 2017). The order confirms a demand of GST of Rs 4,75,88,732 for the period FY 2019-2020 & 2020-2021, along with an equivalent amount of penalty and interest. The demand is due to a short payment of GST resulting from the misclassification or wrong classification of goods under the relevant provisions of the CGST Act, 2017, IGST, and similar provisions under the TNGST Act. The Company intends to file an appeal before the Appellate Authority within the prescribed time limit under the GST Law and hopes for a favorable outcome, expecting no material financial impact.