Bajaj Electricals has informed the exchanges that it received two assessment orders from the Tamil Nadu Commercial Tax authorities concerning GST liabilities for FY 2019-20 and FY 2022-23. The cumulative demand, including tax, interest, and penalties, aggregates approximately ₹19.93 crore across both orders. Management is currently evaluating options, including filing appeals against the orders.
Receipt of GST Assessment Orders
Bajaj Electricals Limited has disclosed the receipt of two formal assessment orders from the Office of the Commercial Tax Officer in Chennai, Tamil Nadu. These orders pertain to alleged discrepancies found during reviews for the financial years 2019-20 and 2022-23. The company confirmed receiving these orders on March 13, 2026.
Details of Demands Issued
The total financial exposure across both assessment orders aggregates nearly ₹20 crore. The demands are broken down as follows:
Order for FY 2019-20 (Total ₹11.20 Crore)
- Tax Demand: ₹3.66 crore
- Interest Levied: ₹3.88 crore
- Penalty Imposed: ₹3.66 crore
This order stems from an alleged difference in input tax credit (ITC) usage and a reported short payment of tax due to turnover differences during the period.
Order for FY 2022-23 (Total ₹8.73 Crore)
- Tax Demand: ₹5.09 crore
- Interest Levied: ₹3.13 crore
- Penalty Imposed: ₹0.51 crore
This assessment relates to an alleged excess claim of ITC and a difference in applicable ITC for the corresponding financial year.
Management Response and Financial Impact
The Company stated that the management is currently assessing the situation and evaluating all appropriate legal recourse available. This includes the possibility of filing an appeal before the appellate authority or initiating a writ petition before the Hon’ble High Court against the orders.
Regarding the quantifiable impact, the company clarified that if the orders materialize (i.e., if no appeal is successful), the financial effect would be limited to the extent of the demand raised and the penalty levied. Crucially, the disclosure notes that there is no current impact on the financial, operational, or other core business activities of the Company stemming from these assessments.
Source: BSE
