Brands
Bajaj Electricals hit with Rs 14.08 crore GST demand, plans legal appeal
MUMBAI: Bajaj Electricals Limited has received an assessment order from the Punjab GST Authority, imposing a Rs 14.08 crore tax demand for the financial year 2020-21. The notice, issued by the Punjab, Mohali assistant commissioner under Section 73 of the Punjab Goods and Services Tax Act, 2017, and Section 73 of the CGST Act, 2017, alleges liabilities related to the reverse charge mechanism (RCM) and discrepancies in the input tax credit (ITC) claimed by the company.
Breakdown of the demand
1 Tax demand: Rs. 7.45 crore
2 Interest: Rs. 5.89 crore
3 Penalty: Rs. 0.75 crore
4 Total demand: Rs. 14.08 crore
Bajaj Electricals has assured stakeholders that it is exploring all legal options, including filing an appeal before the appropriate appellate authority. The company maintains that its financial operations and business activities remain unaffected by the demand and that it is committed to ensuring compliance with all regulatory requirements.
In a formal disclosure to BSE Ltd and the National Stock Exchange of India Ltd (NSE), the company stated that it remains committed to addressing the issue through legal channels and emphasised that there is no immediate operational impact.
While Bajaj Electricals gears up for a legal battle, this development underscores the growing scrutiny of tax compliance in the corporate sector.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
