Mahindra fined Rs 14 lakh, know what is the matter?
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Mahindra & Mahindra Ltd (M&M) has been fined Rs 14.3 lakh by one of its predecessor units for wrongly availing Input Tax Credit (ITC) during the transition from excise duty to Goods and Services Tax (GST) regime.
Rs 14,31,571 fine
This ITC erstwhile Mahindra Vehicle Manufacturers Ltd. which was later merged with Mahindra & Mahindra. In a communication sent to the stock exchanges, the company said on Friday that based on the existing law and the advice of the lawyer, it expects a decision in its favor at the appellate level in the matter. The company has received an order from the Joint Commissioner, CGST and Central Excise, Pune-I Commissionerate to pay a penalty of Rs.14,31,571 under the applicable provisions of the CGST Act, 2017 in respect of erstwhile Mahindra Vehicles Limited (MVML).
Action taken on giving wrong GST input
The company said that this order has been issued for the wrong ITC taken by MVML during the transition from excise duty to GST regime. The Authority has directed to recover this amount along with interest. This order is dated July 20, 2023. The company received this order on August 17, 2023.
Earlier in the month of April also, RBI had imposed a heavy penalty on Mahindra.
Earlier in the month of April also, the RBI had imposed a hefty fine on Mahindra. A fine of Rs 6.77 crore has been imposed by the RBI on this financial institution (RBI Action on Financial Institution). This penalty was imposed on Mahindra for non-compliance of RBI’s financial rules.
Mahindra did not disclose the interest rates while giving loan to the customers.
Actually, Mahindra did not disclose the interest rates while giving loan to the customers, which is a violation of RBI rules. After this, the Reserve Bank took action on this financial institution and imposed a fine of Rs 6.77 crore. Releasing a statement on this matter, the RBI said that between March 31, 2019 and March 31, 2020, an investigation was conducted of Mahindra & Mahindra Financial Services.
Rs 6.77 crore fine
In its investigation, the Reserve Bank found that Mahindra & Mahindra did not properly follow the rules for disclosing the interest rate while giving loans to customers. Along with this, after the change in the rules, the company did not even inform its customers. After this, RBI imposed a hefty fine of Rs 6.77 crore on the company for ignoring the rules.
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