Mahindra Logistics Limited has informed stock exchanges about receiving a significant GST penalty order from tax authorities. The logistics company disclosed the development through a regulatory filing dated December 30, 2025, addressing potential financial implications and the company's response strategy.

GST Penalty Details

The Additional Commissioner, GST & Central Excise, Mumbai East Commissionerate has imposed a penalty on Mahindra Logistics for alleged tax credit irregularities. The order covers a comprehensive assessment period spanning five financial years.

Financial Implications

The GST order encompasses multiple financial components that will impact the company's contingent liabilities. The total exposure extends beyond the headline penalty amount.

These amounts will be classified as contingent liabilities in the company's financial statements until the matter reaches final resolution.

Legal Framework and Allegations

The penalty order has been issued under multiple GST legislations, reflecting the comprehensive nature of the assessment. The authorities have alleged irregularities in Input Tax Credit claims across the specified period.

The applicable legal provisions include:

• Maharashtra GST Act 2017
• Central GST Act 2017
• Integrated GST Act 2017

Company's Response and Outlook

Mahindra Logistics has expressed confidence in challenging the order through appropriate legal channels. The company's assessment suggests grounds for a successful appeal at higher adjudicating levels.

Based on internal evaluation, prevailing legal precedents, and counsel advice, the company maintains an optimistic outlook regarding the final outcome. Management does not anticipate material financial impact on company operations or overall financial position.

Regulatory Compliance

The disclosure has been made in accordance with SEBI regulations governing listed entities. The company has fulfilled its obligations under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparent communication with stakeholders about potential litigation impacts.

Mahindra Logistics Limited has received an ESG (Environmental, Social, and Governance) rating of 78 from NSE Sustainability Ratings Analytics Ltd, as communicated to the stock exchanges.

ESG Rating Details

The company received notification of the ESG rating from NSE Sustainability Ratings Analytics Ltd, which is a SEBI-registered ESG rating provider. The rating reflects Mahindra Logistics' performance across environmental, social, and governance parameters.

Independent Assessment

Mahindra Logistics Limited clarified that it did not engage NSE Sustainability for the ESG rating process. The rating agency independently prepared the assessment based on data pertaining to FY2024-25 that was available in the public domain. The report was issued voluntarily by NSE Sustainability without any formal engagement or request from the company.

Regulatory Compliance

The company has informed both BSE Limited and National Stock Exchange of India Ltd about the ESG rating assignment in compliance with Regulation 30(6) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation covers the requirements under Schedule III and other applicable provisions of the SEBI Listing Regulations.

Public Disclosure

The ESG rating information has been made publicly available through multiple channels:

• Published on NSE Sustainability's official platform at https://www.nse-esgrating.com/esg-ratings
• Uploaded on Mahindra Logistics Limited's website under SEBI regulation disclosures
• Filed with stock exchanges as per regulatory requirements

The company ensures compliance with disclosure obligations under the SEBI Listing Regulations.