Tax Department Demands Rs.138 Crore GST From Bajaj Auto
The company has disputed the order;
Tax Department Demands Rs.138 Crore GST From Bajaj Auto
The company has disputed the order
The Deputy Commissioner of State Tax, Pune, has demanded Rs.1,38,53,14,020 tax, including interest and penalty, from Bajaj Auto Limited under Section 73 of the Maharashtra Goods and Services Tax (GST) Act, 2017.
The tax demand mainly relates to differential tax liability on auto parts classification between specific HSN classification adopted by the company with 18 percent GST as against general HSN classification of auto parts alleged by tax authorities with 28 percent GST.
The authorities stated that the company manufactured automobiles. The entire spare parts were customized products, used only in manufacturing of vehicles. These are classified as auto parts at 28 percent GST, disregarding the principle of general rules of interpretation.
It imposed interest and penalty of Rs.13,85,49,375.
However, the company said, "The order is appealable, and the company has initiated appropriate legal action as per the law.”
The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
By: - Suraj Sinha
