GST Trouble for Bajaj Finance: The days of Bajaj Financial are not going well and the troubles of this company are not showing any signs of decreasing. Bajaj Finance Limited has been ordered by the Central Tax Authority to pay ₹341.28 crore in GST, with additional interest and penalties, due to the characterization of collected interest as a fee. The demand spans from July 2017 to March 2024. Bajaj Finance plans to appeal the decision to the Commissioner (Appeals-II), CGST, Pune.
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GST Trouble for Bajaj Finance
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/or 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.
GST Trouble for Bajaj Finance: ₹341.28 Crore Demand (2017-2024) GST Notice
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.
About the Company:- Bajaj Finance is the country’s largest consumer finance NBFC with assets under management of Rs 3.54 lakh crore. Bajaj Finance Limited operates in the financial services industry, primarily offering consumer loans for purchasing consumer durable goods. The company collaborates with various manufacturers and dealers to provide loans at concessional rates, receiving interest subsidies from these partners.
Bajaj Finance Share Performance: GST notice has had a bad impact on the company’s shares. The company’s shares had to face a decline on Friday, the last trading day of the week. On Friday, the company’s shares fell 0.18% and closed at Rs 7,430.
Bajaj Finance slapped with Rs 863.15 cr GST fine – Know the company's responsehttps://t.co/GuRC2GSryd
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