Bajaj Electricals has received an appellate order significantly reducing a tax demand related to the Goods and Services Tax (GST) for FY 2018-19. The Office of the Additional Commissioner of State Tax (Appeal), Chhattisgarh, partially accepted the company's submissions and lowered the demand to Rs.92.89 lakh, which includes a general penalty of Rs.4.28 lakh. This order, dated June 10, 2026, modifies the initial assessment issued by the Deputy Commissioner of State Tax, Division-02, Raipur, which had alleged differences in tax payable, input tax credit, B2B tax declared, and credit notes.

The original order, dated April 25, 2024, had resulted in a total tax demand of Rs.1.34 crore, inclusive of a general penalty of Rs.6.40 lakh. The reduction follows the company's appeal against the earlier assessment. The management stated that it is currently evaluating appropriate legal remedies available under law, which may include filing an appeal before the appropriate appellate tribunal or initiating writ proceedings before the Hon'ble High Court against the new order.

According to the disclosure, the financial impact of the appellate order will be limited to the extent of the revised demand and the penalty levied. The company clarified that there is no impact on the operational, financial, or other activities of the company on account of this order or assessment.

Breakdown of Tax Demand

The disclosure was made to BSE Limited and National Stock Exchange of India Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015.

Bajaj Electricals Limited faces a confirmed financial liability after an appellate authority dismissed its appeal against a tax demand, potentially impacting its finances by ₹10.95 crore. The adverse appellate order, dated June 8, 2026, was issued by the Office of the Commissioner (Appeals), Customs, CGST & Central Excise, Lucknow. This order upholds the original demand raised by the GST Authority regarding disallowances of GST Input Tax Credit for FY 2020-21.

The appellate authority did not consider the submissions and reconciliation presented by Bajaj Electricals Limited . Consequently, the appeal was dismissed, and the demand raised by the Office of the Joint Commissioner, CGST & Central Excise, Lucknow, was confirmed. The total gross demand amounts to ₹10.95 crore, which includes a specific penalty component of ₹0.99 crore.

Financial and Legal Implications

The management stated that the financial impact of the order would be limited to the extent of the confirmed demand and penalty if it materializes. The company clarified that there is no impact on its operational, financial, or other activities resulting from this assessment or the subsequent appellate order.

Next Steps

Bajaj Electricals is currently evaluating the appropriate legal remedies available under the law. The company intends to file an appeal before the appropriate appellate tribunal and may initiate writ proceedings before the Hon'ble High Court to challenge the appellate order. This development follows the company's initial disclosure on February 28, 2025, regarding the receipt of the final assessment order.