Shriram Finance fined ₹24 Crore for FY20 GST violations
Shriram Finance Limited received an order from the Commercial Tax Officer, Chennai South, levying a penalty of ₹24.06 crore for FY 2019-2020. The penalty relates to alleged GST violations by the erstwhile Shriram City Union Finance Limited. The company believes there is no material impact and will seek rectification for clerical errors.
While the company states there is no material impact, a penalty of over ₹24 crore along with interest is a substantial financial obligation, warranting a medium impact assessment.
The company has been levied a significant penalty and interest related to GST violations, which is a negative development.
Shriram Finance Limited has received an order dated January 23, 2026, from the Office of the Commercial Tax Officer, Chennai South, Tamil Nadu, levying a penalty of ₹24,06,19,502 for the financial year 2019-2020.
This penalty pertains to a show cause cum demand order against the erstwhile Shriram City Union Finance Limited, which was amalgamated with Shriram Finance Limited effective April 1, 2022. The penalty has been 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 alleged violations including the disallowance of input tax credit taken on payment of RCM, excess input tax credit claimed in GSTR-3B, and a credit note issued. A total tax demand of ₹24,06,19,502, along with interest of ₹12,01,51,803 and a penalty of ₹24,06,19,502, has been levied.
Shriram Finance Limited stated that there is no material impact on the company's financial, operational, or other activities. The company observed an arithmetical mistake in the order and plans to file a rectification application under Section 161 of the CGST Act, 2017, after consulting with their tax advisor to correct these clerical mistakes.
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.