Mahindra Holidays & Resorts India has disclosed in a regulatory filing that they have received a tax demand notice of over Rs 363 crore. The notice was issued by Anna Salai, who is the state tax officer at the Central Board of Indirect Taxes and Customs, Chennai. The company received a show-cause notice from the authority for the financial year 2018-2019 demanding Rs 363,07,96,980, which includes tax of Rs 181,53,98,490 and penalty of Rs 181,53,98,490.
According to the regulatory filing, the notice was issued under applicable provisions of the TNGST Act, 2017 & CGST Act, 2017, on account of reporting of IGST on club membership services instead of CGST and SGST and a sudden decrease in IGST payment since August 2023, which happened after the change in registered office of the Company.
The company further stated that there are no expected financial implications of the demand show cause notice based on the company’s assessment, along with the advice of the counsel. It also mentioned taking appropriate steps to pursue legal remedies before the relevant authority in this regard.
Tax notice twice in a year
The company also received a demand order on March 1 earlier this year, totalling over Rs 17.5 crore from the GST authorities in Chennai. The demand, which included interest and penalty, pertained to alleged discrepancies in turnover and input tax credit reversals for the financial year 2020-21.
The order was issued for Rs 17,59,15,319, which comprises a principal amount, interest of Rs 6,12,61,348, and a penalty of Rs 1,11,04,906. MHRIL stated in a regulatory filing that the demand arises primarily from “mismatch in turnover, reversal of input tax credit, reversal of input tax credit due to cancelled GSTIN of vendors and reduction in liability for credit notes.
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