Sharda Motor Industries to Appeal Against GST Penalty Order of ₹31.84 Lakhs

 

Sharda Motor Industries to Appeal Against GST Penalty Order of ₹31.84 Lakhs

Mumbai, October 26, 2025 – Sharda Motor Industries Limited (BSE: 535602, NSE: SHARDAMOTR) has disclosed that it has received an adverse order from the GST appellate authority concerning an e-way bill discrepancy. The company has stated its intention to challenge the order.

In a regulatory filing made pursuant to SEBI's LODR Regulations, the company informed the stock exchanges that the Additional Commissioner Grade 2 (Appeal) in Meerut, Uttar Pradesh, has imposed a penalty of ₹31.84 lakhs.

Nature of the Dispute

The order, dated October 24, 2025, pertains to an alleged procedural discrepancy related to an e-way bill generated on May 19, 2025. The specific violation cited is the "non-generation of Part B of the E-way bill."

E-way bills are mandatory electronic documents for the movement of goods in India, and Part B contains details of the transporter. The authorities have penalized the company for this lapse.

Financial Impact and Company's Stance

Despite the penalty, the company has assessed that there is "no material impact on the financial operations of the company." This indicates that the amount, while significant, is not substantial enough to materially affect the company's financial standing.

Crucially, Sharda Motor Industries has declared that it "will prefer appeal in accordance with the law," confirming that it will challenge the order in a higher forum.

Context for Investors

This disclosure highlights the ongoing regulatory and compliance challenges businesses face in their operations. While the financial implication is stated to be non-material, the company's decision to appeal suggests it believes it has a strong case to contest the penalty.

Investors will be watching for further updates on the outcome of the company's appeal.

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About Sharda Motor Industries Limited:
Sharda Motor Industries Limited is a manufacturer of automotive components, including exhaust systems, catalytic converters, and sheet metal components for major automobile OEMs.

For further information, please contact:
Registered Office: Survey No. 106, 107 & 110, Bommasandra Industrial Area, Jigani Link Road, Bengaluru - 560105.
Website: www.shardamotor.com

This article is based on a public disclosure made by Sharda Motor Industries Limited to the stock exchanges on October 26, 2025.