Shriram Finance Receives Tax Penalties of ₹1.55 Crore for FY21-22
Shriram Finance received tax penalties of ₹1.55 Crore for FY20-21 and FY21-22 from the Commercial Tax Officer, Chennai. The penalties are related to input tax credit disallowance and credit notes. The company states no material impact on its operations and is seeking consultant opinion.
While the company states no material impact, the penalty amount is substantial and relates to core tax compliance, warranting a medium impact assessment.
The company has been levied significant penalties by the tax authorities, which is a negative development.
Shriram Finance Limited has announced that it has received an order dated January 27, 2026, from the Office of the Commercial Tax Officer, Chennai South, Tamil Nadu.
The order levies penalties totaling ₹1,55,76,000 (₹1.55 Crore). Specifically, a penalty of ₹1,05,40,655 was imposed for the Financial Year 2020-2021, and ₹50,35,342 for the Financial Year 2021-2022.
These penalties were imposed under Section 74 of the Central Goods and Service Tax Act, 2017, read with the Tamil Nadu Goods and Service Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017. The demand for FY 2020-2021 arose due to the disallowance of input tax credit on RCM payments and credit notes issued. Similarly, the demand for FY 2021-2022 was due to the same reasons.
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 consultants regarding the demand orders referenced ZD330126178940D and ZD330126183133R, both dated January 27, 2026.
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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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