Shriram Finance Limited has announced that it has received an order dated December 16, 2025, from the Office of the Deputy Commissioner, State Tax, Lucknow, Uttar Pradesh. The order levies penalties of ₹27,70,732 in relation to show cause-cum-demand notices against the erstwhile Shriram City Union Finance Limited, which was amalgamated with Shriram Finance effective April 1, 2022. These penalties were imposed under Section 73 of the Central Goods and Services Tax Act, 2017, read with the Integrated Goods and Services Tax Act, 2017. The demand has arisen due to alleged short payment of GST due to differences in applicable tax rates on scrap sales, non-payment of GST under reverse charge on incentives paid to recovery employees, availment of ineligible Input Tax Credit (ITC), ITC booked in FY 2020-21 but claimed in FY 2021-22, non-submission of supporting invoices for inward supplies, and GST demand raised on payments made to individual Direct Selling Agents (DSAs) where tax was not discharged under Reverse Charge Mechanism. A total tax demand of ₹2,77,07,316, along with interest of ₹1,88,56,157 and a penalty of ₹27,70,732, has been levied. Shriram Finance stated that there is no material impact on the company's financial, operational, or other activities. However, the company is awaiting an opinion from its tax consultant regarding the Uttar Pradesh state demand order.