Mahindra & Mahindra Financial Services Limited announced the company has received an Order (DRC-07) from the Government of Uttar Pradesh (Department of State Tax ­ GST) inter-alia imposing a total penalty demand of INR 7.096 million primarily alleging short reversal of GST input tax credit by the Company. The Company has received an Order from Joint Commissioner State Tax, Government of Uttar Pradesh (Department of State Tax ­GST) imposing demand w.r.t. Fiscal Year 2018-19 as per details given below: GST: INR 7,09,61,783; Interest: At applicable rate; Penalty: INR 70,96,178; Total Demand: INR 7,80,57,961. The Order has been passed under applicable provisions of the Central Goods and Service Tax Act, 2017 and Uttar Pradesh Goods and Service Tax Act,2017, alleging short payment of GST liability by the Company.

The authority has ordered for recovery of the same along with interest and penalty.