Motherson Subsidiary Faces ₹40.63 Lakh Penalty in CGST Case, Plans Appeal

New Delhi, January 29, 2025 – Samvardhana Motherson Auto Component Private Limited (SMAC), a wholly owned subsidiary of Samvardhana Motherson International Limited (BSE: 517334 | NSE: MOTHERSON), has received a penalty order of ₹40,63,543 under the Central Goods and Services Tax (CGST) Act, 2017, and Haryana GST (HGST) Act, 2017 from the Office of the Deputy Commissioner, CGST, Rewari, Haryana.

---

Details of the CGST Order​

The Assistant Commissioner, CGST Rewari, issued the penalty order on January 28, 2025, citing violations under Section 74(1) read with Section 122(2)(b) of the CGST and HGST Acts.

• Total penalty amount: ₹40,63,543 plus interest until payment.
• Alleged violation: Demand order under Section 74(1) & Section 122(2)(b).
• Company’s response: SMAC intends to appeal the penalty and believes it has a strong case on merits.

---

Financial & Operational Impact​

Despite the penalty order, Motherson has clarified that the case has no material impact on the company's financials, operations, or other activities. The company remains confident in its legal position and will pursue an appeal against the order.

---

Company Overview​

SMAC, a key subsidiary of Motherson, specializes in manufacturing, assembling, marketing, and sourcing automotive components. As a major player in the global auto parts industry, the company continues to expand its footprint despite regulatory hurdles.

---

Future Outlook​

While regulatory challenges in the GST framework continue to impact businesses, Motherson’s strong financial standing and legal confidence suggest that the issue may not significantly affect its performance. Investors are expected to monitor developments in the appeal process.