Pune, India, January 31, 2025 – Bajaj Auto Limited (BSE: 532977, NSE: BAJAJ-AUTO) has received a tax demand order from the Joint Commissioner, Central GST, Pune – II Commissionerate, imposing a penalty and interest liability totaling ₹10.04 crore.
GST Order Details
The tax dispute arises from a classification issue concerning the company's instruments cluster for the period between July 2017 and March 2022. The Joint Commissioner ruled that the product should be classified under HSN code 8708/8714, while Bajaj Auto had previously classified it under HSN 9029.- Demanded Differential GST: ₹10,03,91,402
- Interest & Equivalent Penalty: ₹10,03,91,402
- General Penalty: ₹25,000
- Total Penalty Amount: ₹10,04,16,402
Legal Standpoint & Financial Implications
Bajaj Auto disputes the order, citing jurisdictional overreach and ongoing litigation. The company had already filed a writ petition in the Bombay High Court against the show cause notice preceding this order.Despite the demand, the company asserts that the ruling lacks merit and intends to take appropriate legal action to contest the order. Bajaj Auto also stated that this order does not have significant financial implications on its operations.
Strategic Outlook
While this tax dispute introduces a short-term compliance challenge, Bajaj Auto remains confident in its legal position. The outcome of its appeal in the Bombay High Court will be crucial in determining whether the company will need to make further payments or if the order will be reversed.This development is unlikely to impact Bajaj Auto's core business operations or investor confidence significantly, given the company's strong financial standing.