Mahindra Holidays gets GST demand notice of Rs 16.77 crore
Mahindra Holidays & Resorts India has received a tax demand notice of Rs 16.77 crore, including a penalty, from the tax authorities for FY2019-20. The notice pertains to GST issues under the TN GST Act and CGST Act, including penalties for excess ITC utilization and reverse charge mechanism discrepancies. The company is pursuing legal remedies and does not anticipate significant financial impact from the order.
Mahindra Holidays & Resorts India on Wednesday said tax authorities have slapped a demand notice of about Rs 16.77 crore, including a penalty."We wish to inform you that the company has received an Order dated August 13, 2024, from the Assistant Commissioner, Anna Salai, Chennai Central, Tamil Nadu," Mahindra Holidays & Resorts India Ltd said in a regulatory filing.
The company is taking appropriate steps to pursue legal remedies before the appropriate authority in this regard, it added."The Company has received an Order from the Authority for FY2019-20 requiring the Company to pay a demand of Rs 16,76,61,092 (including a penalty of Rs 88,81,479) under applicable provisions of the TN GST Act, 2017 & CGST Act, 2017.
"The Order has been passed primarily on account of GST on Other Incomes, Reverse Charge Mechanism on Other Expenses, Excess utilization of ITC, Reversal of ITC on exempt supplies, etc.," Mahindra Holidays & Resorts India Ltd said in the filing. The hospitality firm further said it does not expect the said order to have any material financial impact on the company.
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