Cholamandalam Investment and Finance Company Limited has informed the Exchange about the GST order received.
CHOLAFIN · price
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Cholamandalam Investment and Finance Company has received a GST assessment order from the Joint Commissioner of GST in Gandhinagar, Gujarat, covering financial years 2017 to 2022. The order alleges short payment of tax on sale of repossessed vehicles and excess claim of input tax credit. A penalty of Rs. 22.44 lakhs and interest of Rs. 9.91 lakhs (totalling about Rs. 32.35 lakhs) have been imposed on the company. The company has stated it will challenge this order before the Appellate Authority. There is no impact on the company's operations or other activities from this order.
The financial impact is small (around Rs. 32.35 lakhs total), so this is unlikely to materially affect the stock. However, investors should watch the appeal outcome, as a larger tax demand could emerge if the appellate authority rules against the company.