Shriram Finance Faces ₹4.6 Cr GST Penalty for FY21

Shriram Finance Ltd has received orders from the Office of the Additional Commissioner of Central GST & C. Ex, Navi Mumbai, levying penalties totaling ₹4.68 Cr for FY 2020-21. Additional penalties of ₹1.84 Cr for FY 2021-22 and ₹3.15 Cr for FY 2022-23 were also imposed on the erstwhile Shriram City Union Finance Limited, which amalgamated with Shriram Finance in April 2022. The penalties are related to non-payment of tax under Reverse Charge Mechanism (RCM) and ineligible Input Tax Credit (ITC) availed on invoices from automobile dealers. The company stated there is no material impact on its financial or operational activities and is seeking a tax consultant's opinion.