Shriram Finance fined ₹13.04 Cr for FY19 GST violations
Shriram Finance Limited received an order on December 30, 2025, levying a penalty of ₹13.04 crore for FY19 GST violations. The penalty, along with ₹15.73 crore interest, relates to erstwhile Shriram City Union Finance Limited. The company states no material impact on its operations.
While the company claims no material impact, the quantum of the penalty and interest is substantial, warranting a medium impact assessment. The company is seeking further consultation, indicating potential implications.
The company has been levied a significant penalty and interest by the tax authorities, which is a negative development.
Shriram Finance Limited has received an order dated December 30, 2025, from the Office of the Commercial Tax Officer, Chennai South, Tamil Nadu, levying a penalty of ₹13,03,53,551 for the financial year 2018-2019.
This penalty pertains to a show cause cum demand order against erstwhile Shriram City Union Finance Limited, which was amalgamated with Shriram Finance Limited effective April 1, 2022. The penalty is imposed under Section 74 of the Central Goods and Services Tax Act, 2017, read with the Tamil Nadu Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017.
The demand arises from the disallowance of input tax credit on RCM payments, excess input tax credit claimed in GSTR-3B, credit notes issued, and GST on leasehold improvements. A total tax demand of ₹13,03,53,551, along with interest of ₹15,73,02,807 and a penalty of ₹13,03,53,551, has been levied.
The company stated that there is no material impact on its financial, operational, or other activities. However, out of commercial prudence, Shriram Finance is awaiting an opinion from its tax consultant regarding the Tamil Nadu state demand order.
What to do with a filing like this
Shriram Finance Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Shriram Finance Limited. Read the original for the full detail.