MUMBAI: Bajaj Electricals Limited has received an assessment order from the Punjab GST Authority, imposing a Rs 14.08 crore tax demand for the financial year 2020-21. The notice, issued by the Punjab, Mohali assistant commissioner under Section 73 of the Punjab Goods and Services Tax Act, 2017, and Section 73 of the CGST Act, 2017, alleges liabilities related to the reverse charge mechanism (RCM) and discrepancies in the input tax credit (ITC) claimed by the company.

Breakdown of the demand

1    Tax demand: Rs. 7.45 crore

2    Interest: Rs. 5.89 crore

3    Penalty: Rs. 0.75 crore

4    Total demand: Rs. 14.08 crore

Bajaj Electricals has assured stakeholders that it is exploring all legal options, including filing an appeal before the appropriate appellate authority. The company maintains that its financial operations and business activities remain unaffected by the demand and that it is committed to ensuring compliance with all regulatory requirements.

In a formal disclosure to BSE Ltd and the National Stock Exchange of India Ltd (NSE), the company stated that it remains committed to addressing the issue through legal channels and emphasised that there is no immediate operational impact.

While Bajaj Electricals gears up for a legal battle, this development underscores the growing scrutiny of tax compliance in the corporate sector.