Muthoot Finance Receives ₹191 Crore GST Demand and Penalty for Alleged Wrongful Input Tax Credit Claims

Muthoot Finance faced a massive GST demand and penalty totaling ₹191 crore for allegedly claiming wrongful Input Tax Credit (ITC). The notice alleges improper availing of credits on various transactions violating GST rules and audit findings. The tax authorities initiated aggressive recovery proceedings under GST laws aimed at curbing fraudulent claims. This case signals enforcers’ intent to strengthen GST compliance and penalize financial institutions for irregularities in ITC claims, highlighting increasing scrutiny of credit utilization in the finance sector.