Motherson subsidiary hit with INR 3.76m tax penalty

Samvardhana Motherson International Limited announced on December 14, 2025, that its wholly-owned subsidiary, SMR Automotive Systems India Limited, received a penalty order from the Commercial Tax Officer, Kancheepuram (Rural), Tamil Nadu. The penalty, totaling INR 37,63,265, was levied under Section 73 of the TNGST Act, 2017, CGST Act, 2017, and Section 20 of the IGST Act, 2017.

Violations cited include issues with IGST ITC not appearing in 2A/2B, non-payment of tax on service income due to non-submission of BRC/FIRC, and inadequate linkage of debit/credit notes with original invoices. Non-consideration of export sales as zero-rated supplies due to a lack of shipping bills was also highlighted.

Despite the penalty, Samvardhana Motherson International Limited states there is no material impact on its financials, operations, or other activities. The company intends to appeal the order to The Appellate Authority within the statutory timeline.