Mahindra Holidays & Resorts India gets GST tax demand notice of Rs 16.77 crore, including a penalty, from the tax authorities for FY2019-20. The notice pertains to GST issues under the TN GST Act and CGST Act, including penalties for excess ITC utilization and reverse charge mechanism discrepancies. The company is pursuing legal remedies and does not anticipate significant financial impact from the order.
“The Company has received an Order from the GST Authority for FY2019-20 requiring the Company to pay a demand of Rs 16,76,61,092 (including a penalty of Rs 88,81,479," Mahindra Holidays & Resorts India Ltd said in a regulatory filing. The time share holiday company further added The company is taking appropriate steps to pursue legal remedies before the appropriate authority in this regard.
The order was passed primarily on account of GST on Other Incomes, Reverse Charge Mechanism on Other Expenses, Excess utilisation of ITC and Reversal of ITC on exempt supplies.
The hospitality firm further said it does not expect the said order to have any material financial impact on the company.
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