Mahindra Logistics faces ₹44.8 Crore GST demand and penalty

Mahindra Logistics Limited has received an order from the Additional Commissioner, GST & Central Excise, Mumbai East Commissionerate, imposing a tax demand of ₹22,40,46,313 and a penalty of ₹22,40,46,...

Mahindra Logistics Limited has received an order from the Additional Commissioner, GST & Central Excise, Mumbai East Commissionerate, imposing a tax demand of ₹22,40,46,313 and a penalty of ₹22,40,46,313. This pertains to GST assessment for the financial years 2018-19 to 2023-24. The issue arises from certain vendors erroneously tagging services under the Reverse Charge Mechanism (RCM) instead of classifying them as exempted services while filing GSTR-1 Returns. This resulted in the alleged demand of GST under RCM and the levy of a penalty on the company. The company, based on its assessment, prevailing law, and counsel's advice, is hopeful for a favorable outcome at the next adjudicating authority or tribunal level. Mahindra Logistics does not reasonably expect this order to have any material financial impact on the company. The order, dated 24 December 2025, was received via email on 30 December 2025, at 4:01 PM IST. The total demand and penalty amount to ₹44,80,92,626 (44.8 crore). This amount will be included in the contingent liabilities of the company's financial statements.

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Why is Mahindra Logistics Limited in the news today?

Mahindra Logistics Limited (MAHLOG) is in the news due to while there is a significant tax demand and penalty, the company believes it will not have a material financial impact and is hopeful for a favorable outcome. the sentiment is neutral as the final outcome is uncertain.

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Mahindra Logistics faces ₹44.8 Crore GST demand and penalty

December 31, 2025, 07:34 AM

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Mahindra Logistics Limited has received an order from the Additional Commissioner, GST & Central Excise, Mumbai East Commissionerate, imposing a tax demand of ₹22,40,46,313 and a penalty of ₹22,40,46,313. This pertains to GST assessment for the financial years 2018-19 to 2023-24.

The issue arises from certain vendors erroneously tagging services under the Reverse Charge Mechanism (RCM) instead of classifying them as exempted services while filing GSTR-1 Returns. This resulted in the alleged demand of GST under RCM and the levy of a penalty on the company.

The company, based on its assessment, prevailing law, and counsel's advice, is hopeful for a favorable outcome at the next adjudicating authority or tribunal level. Mahindra Logistics does not reasonably expect this order to have any material financial impact on the company.

The order, dated 24 December 2025, was received via email on 30 December 2025, at 4:01 PM IST. The total demand and penalty amount to ₹44,80,92,626 (44.8 crore). This amount will be included in the contingent liabilities of the company's financial statements.

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