NewsBajaj Electricals Receives Appellate Order Upholding GST Demand of ₹2.69 Crore Including PenaltyBajaj Electricals Receives Appellate Order Upholding GST Demand of ₹2.69 Crore Including Penalty
Bajaj Electricals disclosed receipt of an appellate order dated May 8, 2026, upholding a GST assessment demand of ₹2.69 crore, including a general penalty of ₹0.14 crore, for FY 2020-21, issued by the Appellate Authority & Additional Commissioner of Revenue, West Bengal. The original assessment, dated February 28, 2025, was raised on grounds of alleged liability under the Reverse Charge Mechanism and input tax credit mismatch. The Company is evaluating legal remedies, including filing an appeal before the appellate tribunal or initiating writ proceedings before the High Court, and has stated there is no impact on its operational or financial activities.
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Bajaj Electricals has disclosed, under Regulation 30 of the SEBI Listing Regulations, that it has received an appellate order dated May 8, 2026, upholding a GST assessment demand of ₹2.69 crore, including a general penalty of ₹0.14 crore, pertaining to FY 2020-21. The appellate order was received by the Company on May 8, 2026, at 2:26 p.m., and was issued by the Appellate Authority & Additional Commissioner of Revenue, State Tax, Large Taxpayer Unit, West Bengal. The disclosure was filed on May 9, 2026, and signed by Prashant Dalvi, Chief Compliance Officer & Company Secretary.
Background of the GST Assessment
The matter originates from an assessment order dated February 28, 2025, issued by the Assistant Commissioner of Revenue, Office of the Special Commissioner, Corporate Division Circle, Directorate of Commercial Taxes, Kolkata, West Bengal, under Section 73 of the West Bengal Goods and Services Tax Act, 2017, read with Section 73 of the Central Goods and Services Tax Act, 2017. The assessment raised an aggregate demand against the Company for FY 2020-21. The key details of the demand are summarised below:
| Parameter: | Details |
|---|---|
| Assessment Order Date: | February 28, 2025 |
| Issuing Authority: | Assistant Commissioner of Revenue, Corporate Division Circle, Directorate of Commercial Taxes, Kolkata, West Bengal |
| Applicable Sections: | Section 73 of the West Bengal GST Act, 2017 & Section 73 of the Central GST Act, 2017 |
| Grounds of Demand: | Alleged liability under Reverse Charge Mechanism and mismatch in input tax credit claimed |
| Financial Year: | FY 2020-21 |
| Aggregate Demand: | ₹2.69 crore |
| General Penalty: | ₹0.14 crore |
Appellate Order Upholds Assessment Demand
Following the Company's earlier communication dated February 28, 2025, regarding the original assessment order, Bajaj Electricals had pursued the matter through the appellate process. The Appellate Authority & Additional Commissioner of Revenue, State Tax, Large Taxpayer Unit, West Bengal, has now issued an appellate order dated May 8, 2026, upholding the original assessment order in its entirety. The appellate order confirms the aggregate demand of ₹2.69 crore, inclusive of the general penalty of ₹0.14 crore.
Management Response and Legal Remedies
In response to the appellate order, the management of Bajaj Electricals is evaluating appropriate legal remedies available under law. The options under consideration include:
- Filing an appeal before the appropriate appellate tribunal against the Appeal Order
- Initiating writ proceedings before the Hon'ble High Court against the Appeal Order
The Company has clarified that the financial impact of the appellate order, if it materialises, would be limited to the extent of the demand raised and the penalty levied thereunder. Furthermore, the Company has stated that there is no impact on its operational, financial, or other activities on account of this order or assessment. The disclosure has been made in compliance with the applicable provisions of the SEBI Listing Regulations.
Historical Stock Returns for Bajaj Electricals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.02% | +0.42% | +10.47% | -20.16% | -26.32% | -60.39% |
If Bajaj Electricals escalates the matter to the GST Appellate Tribunal or High Court, how long could the litigation timeline extend, and what provisioning obligations might arise under accounting standards?
Are there other pending GST assessments or similar ITC mismatch disputes for subsequent financial years (FY 2021-22 onwards) that could expose Bajaj Electricals to additional cumulative tax demands?
How might a sustained pattern of GST disputes related to Reverse Charge Mechanism compliance affect Bajaj Electricals' working capital management and vendor payment structures going forward?
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