Bajaj Holdings Faces Interest, Penalty Demand Of Rs 1.83 Crore Over GST Violation

Bajaj Holdings and Investment Ltd. has recently received an order from the Commissioner, Central Tax, Pune, which entails a demand for interest amounting to around Rs 1.17 crore and a penalty of Rs 66 lakh.

The demand is under various statutes including the Central Goods and Services Tax Act, 2017; Maharashtra Goods and Services Tax Act, 2017; and the Integrated Goods and Services Tax Bill, 2017.

The violation pertains to a delay in the reversal of input tax credit under Rule 42 of the Central Goods and Services Tax Rules, 2017, for FY18 and FY19.

Rule 42 of the CGST Rules, 2017, deals with a situation where a business initially claims a credit for the taxes it has paid on its purchases—known as input tax credit. This rule comes into play when there is a change in how those purchased goods or services are used.

Despite the order, the company said that there is no material impact on its financials, operations, or other activities. In response to the order, Bajaj Holdings—guided by the advice of tax advisors—plans to file an appeal before the tribunal once it is constituted.