Shriram Finance Receives ₹7.43 Crore Penalty Order for GST Non-Compliance
Shriram Finance Limited received a penalty order of ₹7.43 crore from the GST authorities for FY20-21 to FY22-23. The penalties are for GST non-payment and ineligible input tax credit. The company expects no material financial impact and is seeking tax consultant advice.
While the company claims no material impact, the penalty amount of ₹7.43 crore is substantial and warrants a medium impact assessment due to potential operational and financial considerations.
The company has been levied a significant penalty by the GST authorities, which is a negative development.
Shriram Finance Limited has received an order dated February 26, 2026, from the Additional Commissioner of Central Tax, Secunderabad GST Commissionerate, levying penalties totaling ₹7.43 crore for the Financial Years 2020-21, 2021-22, and 2022-23. The penalties, amounting to ₹95,17,242 for FY20-21, ₹1,14,75,442 for FY21-22, and ₹6,24,40,095 for FY22-23, have been imposed under Section 74 of the Central Goods and Services Tax Act, 2017, read with the Telangana Goods and Service Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017.
The demand arises from the non-payment of GST due to adjustments in turnover shown in Form GSTR-9C and the non-reversal of ineligible input tax credit availed on goods or services not used in the furtherance of business.
The company has 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 demand orders.
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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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