Shriram Finance Limited has informed the Exchange about Action(s) taken or orders passed by the Office of the Commercial Tax Officer, Chennai South, Tamil Nadu, levying penalty of Rs.13,03,53,551/- for FY 2018-2019.
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Shriram Finance has received an order dated December 30, 2025 from the Commercial Tax Officer, Chennai South, levying a penalty of Rs.13.04 crore for FY 2018-19 under Section 74 of the CGST Act, 2017. The demand relates to the erstwhile Shriram City Union Finance Limited, which merged with Shriram Finance from April 1, 2022. The total financial exposure stands at Rs.13.04 crore in tax, Rs.15.73 crore in interest, plus Rs.13.04 crore in penalty — roughly Rs.41.8 crore in all. The alleged issues include disallowance of input tax credit on Reverse Charge Mechanism payments, excess ITC claimed in GSTR-3B, credit note adjustments, and GST on leasehold improvements. The company says there is no material impact and plans to seek advice from its tax consultant to challenge the order.
The penalty relates to a pre-merger period and is a routine tax dispute that the company intends to contest. While the combined demand of ~Rs.42 crore is not negligible, the company has stated no material impact on operations, suggesting it is unlikely to move the stock significantly — though investors should watch for any escalation or demand notice from Tamil Nadu tax authorities.