Mahindra Holidays & Resorts India Limited has informed the Exchange about the details of material litigation
MHRIL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Mahindra Holidays has received a Show Cause Notice from the Tamil Nadu State Tax Officer, Anna Salai Central III, Chennai, for financial year 2018-19. The total demand is around ₹363 crore, split equally into tax (~₹181.5 crore) and penalty (~₹181.5 crore) under the TNGST Act, 2017 and CGST Act, 2017. The dispute relates to the company reporting IGST on its club membership services instead of CGST and SGST, and a drop in IGST payments since August 2023 after its registered office shifted. The company, based on its own assessment and advice from legal counsel, believes this notice will not have a material financial impact. It is planning to contest the demand through legal channels at the appropriate authority.
Despite the large headline number, the company expects no material financial impact, which should reassure shareholders. However, the matter is still at a notice stage and outcomes will depend on the legal process, so investors should monitor further updates for any change in stance.