Bajaj Finance faces ₹863 cr GST demand, ETCFO
Highlights
- Bajaj Finance Limited has received a GST demand order totaling ₹ 341.28 crore from the Joint Commissioner, Central Tax, Pune-II Commissionerate, which includes interest and penalties.
- The GST demand relates to the treatment of upfront interest collected from customers as a fee, and Bajaj Finance plans to challenge the order by filing an appeal before the Commissioner (Appeals-II), Central Goods and Services Tax, Pune.
Bajaj Finance Limited has received an order from the office of Joint Commissioner, Central Tax, Pune-II Commissionerate on 25 January 2025, according to the Company’s exchange filing.
The GST authority has imposed a GST demand of ₹ 341.28 crore, Interest amount liability till the date of order of ₹ 180.59 crore, and Penalty U/s 74 (1) of ₹ 341.28 crore on the deposit-taking Indian non-banking financial company.
The matter relates to Bajaj Finance’s entering into agreements with various manufacturers and dealers wherein, offering loans at concessional rates to its customers for the purchase of consumer durable goods for which interest subsidy is received by the Company from the manufacturers and/dealers.
The Company received the order on the account of the collection of interest from its customer confirming the demand of GST treating upfront interest collected upfront as a fee.
The demand confirmed is for the period from July 2017 to March 2024.
The Company is likely to challenge the order before an appropriate authority. “The Company is in the process of filing an appeal against the said Order,” Bajaj Finance said in an exchange filing.
The appeal is set to be filed before Commissioner (Appeals-II), CGST, Pune.
