1 week Ago
The Office of the Joint Commissioner, Central Tax, Pune-II Commissionerate, has slapped an order to Bajaj Finance , including a GST demand, interest liability, and penalty, aggregating to ₹863.15 crore. The non-banking finance company , in an exchange filing, said the order passed by the Joint Commissioner includes a GST demand of ₹341.
28 crore, an interest liability up to the date of the order of ₹180.59 crore, and a penalty of ₹341.28 crore.
“The Company had entered into agreements with various manufacturers and dealers wherein, it offers loan at concessional rates to its customer for purchase of consumer durable goods for which interest subsidy is received by the Company from the manufacturers and/ dealers.” “In a few cases, the Company also receives/ collects interest upfront from its customer. In respect of interest collected upfront, the Company had received an order on 25 January 2025 passed by Joint Commissioner, Central Tax, Pune-II, Commissionerate confirming demand of GST treating upfront interest collected upfront as a fee.
The demand confirmed is for the period from July 2017 to March 2024,” per the filing. The company said it is in the process of filing an appeal against the order. Based on the opinion of a tax expert, the company is of the view that the demand is not tenable and is likely to be set aside, according to the filing.
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