Bangalore, February 03, 2025 – Bosch Limited (NSE: BOSCHLTD, BSE: 500530) has disclosed an order issued by the Joint Commissioner of Central Tax, Bangalore South Commissionerate, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Tax Demand and Reclassification of Goods
The order confirms a demand for differential tax amounting to ₹77.74 crore along with an equivalent penalty of ₹77.74 crore, totaling ₹155.48 crore, under Section 74 of the CGST Act. Interest on this amount remains unspecified in the order.The issue arises from a classification dispute regarding Electronic Control Units (ECUs). The tax authority has ruled that ECUs should be categorized under HSN code 8708 (parts of automobiles), attracting a 28% GST rate, instead of HSN 9032, under which Bosch Limited had classified them at an 18% GST rate.
Timing and Compliance
Bosch Limited received the order late on January 31, 2025, at 9:57 PM, and it was formally acknowledged on February 3, 2025, at 10:35 AM, after the weekend. The company attributed the delay in reporting to circumstances beyond its control and reaffirmed its commitment to compliance.Financial and Operational Impact
The financial impact of the order stands at ₹155.48 crore, excluding any interest component that may be levied later. While the company has not disclosed operational consequences, tax disputes of this scale could impact its working capital and financial performance.Company's Response
Bosch Limited has assured investors that it remains committed to regulatory compliance and will take necessary steps to address the matter. The company has not yet disclosed whether it intends to appeal the order.Investors are advised to stay updated on further developments, as any appeal process or potential liability settlement could impact Bosch Limited’s financial outlook.