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News Topical, Digital Desk : Mahindra Holidays on Sunday informed in an exchange filing that the company has received a show-cause notice and demand order of Rs 363 crore from the Tamil Nadu tax department. The company said that Mahindra Holidays and Resorts India Limited has received a show-cause notice and tax demand order of Rs 363 crore from the state tax authorities of Tamil Nadu for the financial year 2018-19 (FY19). The company informed the stock market that this notice has been issued under the Tamil Nadu GST Act 2017, in which objections have been raised regarding input tax credit (ITC).
Mahindra Holidays has said that it will respond to this notice in a legal manner and take necessary steps accordingly. The company said in an exchange filing, "Mahindra Holidays and Resorts India Limited has been issued a demand show-cause notice of Rs 363.07 crore (including tax of Rs 181.53 crore and penalty of Rs 181.53 crore) for the financial year 2018-19 by the State Tax Officer, Anna Salai Central III, Chennai, Tamil Nadu."
What is the reason for the notice This notice has been issued under the provisions of the Tamil Nadu GST Act 2017 and the Central GST Act, 2017. It has been alleged that the company reported IGST on club membership services, whereas CGST and SGST were applicable on it. Apart from this, the sudden drop in IGST payment after the change in the registered office of the company from August 2023 also became the reason for the notice. Share performance On Friday, the company's stock closed at Rs 339.90, down 0.40 per cent. In the last one year, the company's stock has seen a decline of 26.19 per cent.
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