Bajaj Electricals announced the outcome of an appeal against a Goods and Services Tax (GST) assessment order from FY 2017-18. The initial demand, amounting to ₹1.04 crore, has been drastically reduced by the Appellate Authority to ₹15.63 lakh. This significant reduction includes a penalty component, though the management is still evaluating further legal options, including a potential appeal to the High Court. The company confirmed that the order has no material impact on its current operations or financials.
Update on GST Assessment Dispute
Bajaj Electricals Limited has provided an update regarding a tax matter dating back to the Financial Year 2017-18 concerning the alleged disallowance of Input Tax Credit (ITC). Previously, on March 31, 2024, the Company had intimated receiving an assessment order from the Deputy Commissioner of Sales Tax, Danapur (Bihar), imposing a total demand of ₹1.04 crore, which included a penalty of ₹0.20 lakh.
Favorable Appeal Outcome
The Company has now received an Appeal Order from the Appellate Authority, dated March 20, 2026. This order provides substantial relief, reducing the total demand imposed significantly. The revised demand now stands at ₹15.63 lakh, inclusive of a general penalty of ₹0.72 lakh. The Appeal Order was received on March 20, 2026, at 19:13 hours.
Management Response and Financial Impact
The management is currently assessing all appropriate legal avenues, which may include filing an appeal before a higher appellate authority or initiating a writ petition before the Hon’ble High Court against this new Appeal Order. Financially, the Company stated that the impact of the Appeal Order, should it materialize (meaning, should no further appeal be filed or should the order be upheld), will be limited to the reduced demand of ₹15.63 lakh. Crucially, the announcement confirms that the order has no impact on the operational, financial, or other activities of the Company.
Source: BSE
