Muthoot Finance Receives ₹1.91 Crore GST Demand and Penalty for Alleged Wrongful ITC Claims
Muthoot Finance has received a GST demand and penalty of Rs. 1.91 crore for alleged wrongful input tax credit claims but said it will appeal the order.
Muthoot - Finance - Taxscan
Muthoot - Finance - Taxscan
Muthoot Finance Limited has received a tax demand and penalty order from the Goods and Services Tax ( GST ) authorities in Noida.
The order, passed on 12 September 2025 by the Assistant Commissioner of Central GST, Division I, Noida, has raised a total liability of Rs. 1.91 crore against the company. This includes a tax demand of Rs. 95.73 lakh and an equal penalty amount of Rs. 95.73 lakh.
The notice was issued under Section 74 of the Central GST Act, 2017. According to the order, the demand is linked to alleged irregularities in the company’s Input Tax Credit (ITC) claims. The authorities stated that Muthoot Finance claimed ITC of Rs. 95.70 lakh from suppliers whose GST registrations had been cancelled retrospectively. In addition, a smaller portion of Rs. 2,745 was claimed on debit notes issued by suppliers who had not filed their GSTR 3B returns.
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The company has strongly disagreed with these findings. In its report, Muthoot Finance said it is of the firm view that the allegations made in the order are not sustainable. The management has confirmed that it will file an appeal against the order. The company also assured investors and stakeholders that this issue does not have any material impact on its financial position, operations, or other business activities.
The disclosure was made in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. It also follows the guidelines issued by SEBI in July 2023 that require listed companies to provide detailed information about regulatory actions or legal proceedings.
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About Company
Muthoot Finance is one of India’s largest non banking financial companies. Headquartered in Kochi, Kerala, it is best known for its gold loan business, where customers pledge gold ornaments to access short term credit. The company also offers a wide range of financial services, including housing finance, personal loans, insurance, and money transfer services.
With thousands of branches across the country and a significant presence in rural and semi urban areas, Muthoot Finance serves millions of customers every year. The management has said that it remains committed to compliance and will address the present matter through the proper legal process.
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