Mahindra Holidays & Resorts India Limited (MHRIL), a prominent player in the hospitality sector, has recently come under regulatory scrutiny. The company has disclosed receiving a significant GST demand notice from the Tamil Nadu tax authorities, raising concerns about potential financial implications.

Details of the Demand Notice

The State Tax Officer in Chennai, Tamil Nadu, has issued a Show Cause Notice (SCN) to Mahindra Holidays, demanding a substantial sum of ₹33,28,74,524. This amount includes interest and penalties under the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017 and the Central Goods and Services Tax (CGST) Act, 2017 for the financial year 2021-22.

Reasons for the Demand

The tax demand stems from several adjustments identified by the tax authorities:

1. Adjustments in turnover
2. Supply differences
3. Trade payable discrepancies
4. Disposal of assets
5. Addition of assets

Company's Response

In response to this development, Mahindra Holidays has stated that it does not expect the notice to have any material financial impact on the company. This assessment is based on the company's internal evaluation and advice from its legal counsel.

Next Steps

The company has announced its intention to pursue appropriate legal remedies before the relevant authorities. Mahindra Holidays is taking steps to address the issues raised in the SCN and defend its position.

Disclosure and Compliance

In compliance with regulatory requirements, Mahindra Holidays has promptly disclosed this information to the stock exchanges. The company filed the disclosure under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Investor Considerations

While the company maintains that the financial impact will not be material, the substantial amount involved in the tax demand may raise concerns among investors and stakeholders. The outcome of the legal proceedings and any potential adjustments to the company's financial statements will be closely watched by market participants.

As the situation develops, Mahindra Holidays & Resorts India Limited is expected to provide further updates on the progress of its legal remedies and any material changes in the status of this tax demand.

Mahindra Holidays & Resorts India Limited (MHRIL), a prominent player in the hospitality sector, has received a significant tax demand notice from the Tamil Nadu state tax authorities. The company disclosed this development in a recent filing to the stock exchanges, shedding light on the potential financial implications and its response to the situation.

Details of the Demand Notice

The State Tax Officer, Anna Salai Central III, Chennai, Tamil Nadu, issued a Show Cause Notice (SCN) to Mahindra Holidays on July 25, 2025. The notice, bearing reference number ZD3307252827723, demands a substantial sum of ₹33,28,74,524, which includes interest and penalties under the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017 and the Central Goods and Services Tax (CGST) Act, 2017 for the financial year 2021-22.

Reasons for the Demand

The tax demand is based on several adjustments identified by the tax authorities:

1. Adjustments in turnover
2. Supply differences
3. Trade payables
4. Disposal of assets
5. Addition of assets

Company's Stance and Response

Mahindra Holidays & Resorts India Limited has taken a firm stance on the matter:

1. No Material Financial Impact: Based on its internal assessment and advice from legal counsel, the company does not expect the SCN to have any material financial impact on its operations.

2. Legal Remedies: MHRIL has stated that it is pursuing appropriate legal remedies before the relevant authorities to address the tax demand.

3. Disclosure Compliance: In line with regulatory requirements, the company has promptly disclosed this information to the stock exchanges under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Investor Communication

To ensure transparency, Mahindra Holidays has made the information available on its official website ( www.clubmahindra.com ) for investors and stakeholders. The company's General Counsel & Company Secretary, Dhanraj Mulki, signed off on the regulatory filing, emphasizing the company's commitment to keeping the market informed of significant developments.

As this situation unfolds, investors and industry observers will likely keep a close watch on how Mahindra Holidays navigates this regulatory challenge and its potential impact on the company's financial position in the coming months.