MHRIL Receives ₹9.78 Crore GST Show Cause Notice for FY23
Mahindra Holidays & Resorts India Limited (MHRIL) received a Show Cause Notice (SCN) demanding ₹9.78 crore for FY23. The notice covers tax, interest, and penalty related to GST compliance. MHRIL believes the SCN will not have a material financial impact.
The impact is considered medium because, although the notice is for a substantial amount (₹9.78 crore), the company has assessed that it will not have a material financial impact. This suggests potential resolution or manageable implications.
The company received a significant tax demand notice, which is a negative development. However, the company's assessment that it will not have a material financial impact mitigates the negative sentiment, resulting in a neutral outlook.
Mahindra Holidays & Resorts India Limited (MHRIL) announced on September 2, 2026, that it has received a Show Cause Notice (SCN) from the Assistant Commissioner of Commercial Taxes (Audit), Madikeri. The notice, dated September 1, 2026, demands an amount of ₹9,78,36,455 for the Financial Year 2022-23.
This demand includes ₹6,23,44,203 in tax, ₹2,92,07,832 in interest, and ₹62,84,420 in penalty. The SCN is issued under the provisions of the Karnataka Goods and Services Tax Act, 2017, and the Central Goods and Service Tax Act, 2017, citing reasons such as ineligible Input Tax Credit (ITC) claimed in GSTR-3B and tax discharged on supplies reported under GSTR-7 and GSTR-8.
Despite the demand, MHRIL's assessment indicates that the SCN is not expected to have a material financial impact on the company. The company is taking necessary steps to address the matter with the appropriate authorities.
A plain-language summary of a public exchange filing by Mahindra Holidays & Resorts India Limited. Read the original for the full detail.