Bajaj Finance Receives Show Cause Notice for Rs 342 Crore GST Demand
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Bajaj Finance says authorities have alleged that the fixed amount of upfront interest collected from customers in B2B business should be considered as fee/service charge and accordingly is liable to GST.
The amount of GST demanded vide above referred SCN is Rs 342 crore (excluding interest and penalty) for the period from July 2017 to March 2024, says Bajaj Finance.
Bajaj Finance on Monday said it has received a show cause notice for a GST demand of Rs 342 crore. In a filing to the BSE, Bajaj Finance said in the show cause notice (SCN) from the Director General of GST Intelligence (DGGI), Kochi Zonal Unit, the authorities have alleged that the fixed amount of upfront interest collected from customers in B2B business should be considered as fee/service charge and accordingly is liable to GST.
“The amount of GST demanded vide above referred SCN is Rs 342 crore (excluding interest and penalty) for the period from July 2017 to March 2024,” it said.
The DGGI has also proposed an equal amount of penalty and interest till the date of payment of the said tax. The company is in the process of filing a reply against the SCN to substantiate its stand.
Shares of Bajaj Finance closed at Rs 6610.30, down 0.13 per cent over the previous close on the BSE.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
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