Bajaj Auto Limited has received the Order with tax demand amounting to ₹ 1,38,53,14,020 under Section 73 of Maharashtra GST Act, 2017, from the office of the Deputy Commissioner of State Tax, Pune, according to the Company’s exchange.
The tax demand mainly relates to differential tax liability between specific HSN classification adopted by the Company with GST rate of 18% as against general HSN classification of auto parts alleged by tax authorities with GST rate of 28%.
According to tax authorities, the Company being a manufacturer of automobiles, the entire spare parts being customised product, used only in manufacturing of vehicles would get classified as auto parts at GST rate of 28% disregarding the principle of general rules of interpretation. The Order also imposes applicable interest and penalty of ₹ 13,85,49,375.
The Company is likely to challenge the order before an appropriate authority. “The said Order is an appealable order and the Company has initiated appropriate legal action as per law,” said Bajaj Auto in their regulatory filing.
The disclosure was made before the exchange under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
