Bajaj Electricals Limited has disclosed the receipt of two assessment orders from the Tamil Nadu Commercial Tax Officer concerning GST demands for FY 2019-20 and FY 2022-23. The total alleged demand aggregates approximately ₹19.93 crore, covering tax, interest, and penalties. The Company is currently evaluating legal options, including filing appeals, but states that the immediate financial impact, if materialized, is limited, and there is no impact on current operations.
Disclosure of Tax Assessment Orders
Bajaj Electricals Limited has formally announced the receipt of two significant assessment orders from the Office of the Commercial Tax Officer in Chennai Central, Tamil Nadu. These orders were officially received by the Company on March 13, 2026.
Details of Assessment Orders
The orders pertain to the assessment years FY 2019-20 and FY 2022-23, relating to alleged discrepancies in Input Tax Credit (ITC) and turnover differences under the Tamil Nadu GST Act, 2017.
Order for FY 2019-20
- Alleged Demand: An aggregate demand of ₹11.20 crore.
- This amount comprises a tax demand of ₹3.66 crore, interest of ₹3.88 crore, and a penalty of ₹3.66 crore.
- Alleged Contravention: Difference in input tax credit (ITC) and alleged short payment of tax due to turnover difference.
Order for FY 2022-23
- Alleged Demand: An aggregate demand of ₹8.73 crore.
- This includes a tax demand of ₹5.09 crore, interest of ₹3.13 crore, and a penalty of ₹0.51 crore.
- Alleged Contravention: Alleged excess claim of ITC and difference in ITC for the relevant period.
Management Response and Financial Impact
The Company management is currently engaged in evaluating all appropriate legal options available. This evaluation includes the possibility of filing an appeal before the designated appellate authority or initiating a writ petition before the Hon’ble High Court to contest the orders.
Regarding the potential quantification, the financial impact of these orders, should they materialize, is stated to be limited strictly to the extent of the demands raised and the penalties levied thereunder. Importantly, the Company asserts that there is no expected impact on the ongoing financial, operational, or other activities of the Company resulting from these specific assessments at this time.
Source: BSE
