New Delhi, February 1, 2025 – PNB Housing Finance Limited (NSE: PNBHOUSING, BSE: 540173) has disclosed receiving a penalty order from the Joint Commissioner of CGST & Central Excise, Thane, amounting to ₹11.93 crore for allegedly passing on ineligible input tax credit (ITC) for the period between July 2017 and March 2020.
Regulatory Action & Penalty Details
In a filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company stated that the penalty was imposed under Section 122(1)(ii) of the CGST Act, 2017, along with relevant provisions of the SGST and IGST Acts. The penalty order was issued in relation to a show cause cum demand notice originally issued by the Additional Director, Directorate General of GST Intelligence (DGCI), Mumbai Zonal Unit.The penalty breakdown is as follows:
- PNB Housing Finance Ltd: ₹4,17,50,847
- PHFL Home Loan And Services Ltd (subsidiary): ₹7,75,83,046
Company’s Response & Financial Impact
PNB Housing Finance has confirmed receipt of the order via email on January 31, 2025, and intends to appeal against the decision. The company emphasized that the penalty does not have a material impact on its financials, operations, or other business activities.Next Steps
PNB Housing Finance is expected to challenge the order through the appellate mechanism available under GST law. The outcome of the appeal could influence the company's financial liabilities and compliance standing.Investors and stakeholders will be closely monitoring further developments as the case progresses.