Mumbai, Feb. 22 -- Bajaj Electricals Ltd has received a Rs 148 million GST demand from Punjab's tax authorities over an alleged input tax credit (ITC) mismatch for FY 2020-21. The demand stems from an assessment order issued by the Assistant Commissioner, Mohali, Punjab, citing liabilities under the reverse charge mechanism.
Breakdown of Tax Demand The total demand of Rs 148 million comprises:
Rs74 million in tax liability Rs 58 million as interest Rs 75 lakh as a general penalty Company's Response & Legal Stand Bajaj Electricals has stated that it is evaluating legal options, including filing an appeal before the relevant appellate authority. The company has also reassured stakeholders that this development will not impact its financial operations or other business activities.
GST Compliance Challenges for Corporates This case highlights the ongoing complexities businesses face in GST compliance, particularly in managing input tax credits and reverse charge liabilities. Many companies continue to navigate regulatory challenges as tax authorities tighten scrutiny on tax claims and mismatches.
Bajaj Electricals remains committed to addressing the issue through legal channels, ensuring minimal disruption to its business operations.
Published by HT Digital Content Services with permission from Construction World.