Mahindra Two Wheelers receives tax notice for Rs 4.11 crore, to appeal against penalty

Mahindra Group, in a filing on Friday morning, said that its two-wheeler business, Mahindra Two Wheelers Ltd, has received a tax notice of Rs 4,11,50,120 from the State Tax Deputy Commissioner in Indore, Madhya Pradesh. 

The company said that it received the order on December 28. 

It clarified that the penalty was imposed on two grounds – 

1. Invoice basis which Input Tax Credit (ITC) has been claimed by MTWL are not reported by vendors in GST returns and thus are not appearing in auto populated GSTR-2A. 

2. Carry forward of Education Cess credit balance not allowed from pre-GST regime to GST regime. 

“Based on the company’s assessment, an appeal will be filed and the company is hopeful of a favorable outcome at the appellate level and does not reasonably expect the said order to have any material financial impact on the company,” it said. 

Mahindra Two Wheelers produces scooters like Gusto and Rodeo UZO 125, and motorcycles such as Centuro NXT, Centuro Disk Brake, Centuro XT, Centuro Rockstar, and Centuro Rockstar Kick Alloy. 

All their products are manufactured at their state-of-the-art manufacturing unit in Pithampur, Madhya Pradesh.

Mahindra’s Two Wheelers Division recently acquired a 51 per cent stake in France-based Peugeot Motorcycles, part of the Peugeot SA Group. Peugeot Scooters has its presence in more than 40 countries across Europe, Africa, Asia and Middle East.

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