Shemaroo Entertainment Faces ₹2.3 Bn GST Penalty Hammer on Top Executives and Firm

Shemaroo Entertainment Ltd, a key player in India's media sector, received orders from tax authorities under Section 122(1)(ii) & (x) and Section 122(2)(b) of the CGST Act, 2017, read with Section 20 of the IGST Act. This stems from probes into GST evasion through 20 bogus firms, wrongful ITC claims exceeding ₹133 crore historically, and related fraud. The latest penalties target senior leadership personally, escalating prior disputes where executives faced arrests and court stays on similar demands up to ₹400 crore.​

Key Highlights

Individual Penalties: ₹1.34 billion each on Joint Managing Director, CEO (Hiren Gada), and CFO (Amit Haria).​

Company Penalty: ₹633.5 million directly on Shemaroo Entertainment Ltd.​

Legal Context: Builds on 2023 arrests, ₹133-400 crore prior penalties; Bombay HC granted interim stays citing retrospective application issues.​

Allegations Core: Fake firms for ITC fraud worth ₹70-133 crore, revenue loss to exchequer.​

Sources: Marketscreener, Taxscan, CNBC TV18.