L&T Finance Limited has received a penalty order amounting to Rs 1,12,01,85,000 under Section 122(1)(ii) of the CGST Act, 2017. The order was issued by the Additional Commissioner, CGST & C.EX., Palghar Commissionerate, on charges of alleged invoicing without rendering actual services in connection with marketing and brand promotion within its retail lending business.
The allegations suggest that the invoices pertain to services related to marketing and brand promotion of insurance products that were allegedly not provided as required under the CGST framework. However, L&T Finance has refuted these claims, asserting that the company had duly rendered the services and paid the applicable GST on them.
In response to the penalty, L&T Finance has confirmed its intention to appeal the order before the appropriate appellate authorities. The company emphasized that it does not anticipate any material financial impact from the case and remains confident in its legal position.
This development comes amid ongoing scrutiny of compliance within various sectors, as tax authorities seek to clamp down on potential discrepancies under GST regulations. As the company moves forward with its appeal, investors and stakeholders are closely watching the proceedings.
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