Bajaj Auto Faces GST Penalty Dispute

Bajaj Auto Ltd faces over Rs 10 crore penalty and interest imposed by the tax authority due to a GST classification discrepancy over the years 2017-2022. The company plans to challenge the order legally, asserting a strong case, with the issue currently pending in the Bombay High Court.

Bajaj Auto Ltd is embroiled in a legal dispute with the tax authority following the imposition of a penalty exceeding Rs 10 crore. The conflict arises from a differential GST classification of instrument clusters for the period from July 2017 to March 2022.

The Joint Commissioner of Central GST, Pune - II Commissionerate, confirmed the classification under HSN code 8708/8714, contrary to the company's adopted classification of 9029. This decision has solidified a demand for the payment of differential GST, which amounts to over Rs 10 crore.

Bajaj Auto contends the decision lacks merit and jurisdiction, especially as it ignores a writ petition they filed with the Bombay High Court. With a firm belief in their strong case, Bajaj Auto intends to initiate appropriate legal action against the order, asserting no major financial impact from this penalty.

(With inputs from agencies.)