Pune, January 26, 2025 – Bajaj Finance Limited (NSE: BAJFINANCE, BSE: 500034) has received a Goods and Services Tax (GST) demand order of ₹863.15 crore, including tax, interest, and penalties, from the Joint Commissioner, Central Tax, Pune-II Commissionerate. The company has announced plans to file an appeal against the order before the Commissioner (Appeals-II), CGST, Pune.
Case Background & GST Demand Breakdown
The dispute arises from Bajaj Finance’s loan agreements with manufacturers and dealers, where it offers concessional rate loans for consumer durable purchases. The company receives an interest subsidy from manufacturers and upfront interest payments from customers as part of these agreements. The tax authorities have classified the upfront interest collected as a fee, subjecting it to GST from July 2017 to March 2024.| GST Demand | Breakdown Amount (₹ Crore) |
| Tax Liability | 341.28 |
| Interest Due | 180.59 |
| Penalty (Section 74(1)) | 341.28 |
| Total Demand | 863.15 |
Bajaj Finance’s Response & Next Steps
- Based on expert legal opinion, the company maintains that the GST demand is not tenable and is confident of a favorable outcome.
- An appeal will be filed with the Commissioner (Appeals-II), CGST, Pune, challenging the classification of upfront interest as a taxable fee.