Mahindra Logistics Receives GST Order Imposing ₹44.81 Crore Tax Demand and Penalty
Mahindra Logistics Limited faces a GST order imposing ₹22.40 crores tax demand and equal penalty for FY2018-24 period, totaling ₹44.81 crores. The demand arises from vendor errors in tagging services under Reverse Charge Mechanism instead of exempted services during GSTR-1 filing. The company expects favorable appellate outcome and anticipates no material financial impact on operations.
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Mahindra Logistics Limited has informed stock exchanges about receiving a significant GST order that imposes a combined financial demand of ₹44.81 crores. The company disclosed this development through a regulatory filing dated December 31, 2025, under SEBI Listing Regulations.
GST Order Details
The Additional Commissioner, GST & Central Excise, Mumbai East Commissionerate, has issued an order imposing substantial financial obligations on the company. The order covers GST assessment for six consecutive financial years from FY 2018-19 to FY 2023-24 under the Maharashtra GST Act 2017, CGST Act 2017, and IGST Act 2017.
| Component | Amount |
|---|---|
| Tax Demand | ₹22,40,46,313.00 |
| Penalty | ₹22,40,46,313.00 |
| Total Impact | ₹44,80,92,626.00 |
Root Cause of the Demand
The GST demand stems from procedural errors in vendor compliance during the filing of GSTR-1 returns. Certain vendors incorrectly tagged services under the Reverse Charge Mechanism (RCM) when these services should have been classified as exempted services under the applicable GST Acts. This misclassification resulted in the alleged GST demand under RCM provisions and subsequent penalty imposition on the company.
Company's Response and Expectations
Mahindra Logistics has assessed the order based on prevailing law and legal counsel advice. The company maintains an optimistic outlook regarding the appeal process and expects a favorable outcome at the next adjudicating authority or tribunal level. Management does not reasonably expect the order to have any material financial impact on the company's operations or financial performance.
Timeline and Disclosure
The GST order was dated December 24, 2025, and the company received email intimation on December 30, 2025, at 4:01 PM IST. The amounts will be reflected as contingent liabilities in the company's financial statements until the matter is resolved through the appellate process.
Regulatory Compliance
The disclosure has been made in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, specifically under Regulation 30. The company has also uploaded this information on its official website as part of its transparency commitments to stakeholders.
