Bajaj Electricals Limited has received a significant GST assessment order from the Madhya Pradesh tax authorities, demanding Rs 5.75 crore for alleged input tax credit discrepancies during the financial year 2019-20. The company disclosed this development to stock exchanges under regulatory compliance requirements on April 1, 2026.

Assessment Order Details

The assessment order was issued by the Office of the Deputy Commissioner of State Tax, Circle-10, Division-2, Zone-1, Indore, Madhya Pradesh, under Section 74 of the MPGST Act, 2017. The company received the order on March 31, 2026, at 5:54 p.m.

Company's Response Strategy

The management is currently evaluating appropriate legal remedies to challenge the assessment order. The company has indicated its intention to explore various legal options, which may include filing an appeal before the appropriate appellate authority against the said order.

Financial and Operational Impact

Bajaj Electricals has clarified the potential implications of this assessment order on its business operations. The company stated that if the demand materializes, the financial impact would be limited to the extent of the demand raised and penalty levied. Importantly, the management has emphasized that there is no impact on the operational, financial, or other activities of the company due to this assessment order.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation requires companies to disclose material events that could impact investor decisions, ensuring transparency in corporate communications.

The company has fulfilled its regulatory obligations by informing both BSE Limited and National Stock Exchange of India Limited about this development, maintaining compliance with applicable listing regulations.

Bajaj electricals Limited has received an unfavorable appeal order regarding a GST demand of Rs 80.75 lakh, according to a regulatory disclosure filed with stock exchanges on March 31, 2026. The appeal order, dated March 26, 2026, was received by the company on March 30, 2026, at 14:17 hours.

GST Demand Details

The appeal order upholds the total demand raised by the Additional Commissioner, Circle-I, Jaipur III, AC, Jaipur-III, Rajasthan, under section 73 of the GST Act, 2017. The demand pertains to delayed reporting of sales invoices for FY 2017-18 and FY 2018-19.

Appeal Process Complications

The company had previously filed an appeal before the Office of the Commissioner (Appeals), Central Excise, Customs & Central Goods and Services Tax, Jaipur. However, complications arose during the appeal process:

• The company had withdrawn the appeal for FY 2017-18
• An application was submitted under the amnesty scheme for waiver of interest and penalty
• No order has been received regarding the amnesty scheme application to date
• The Appellate Authority did not acknowledge the withdrawal application and issued the appeal order covering both financial years

Legal Options Under Consideration

The management is currently evaluating appropriate legal remedies, which include:

• Filing an appeal before the appropriate appellate tribunal
• Filing a writ petition before the High Court against the appeal order

Financial and Operational Impact

According to the company's disclosure, the financial impact of the appeal order, if it materializes, would be limited to the extent of the demand raised and penalty levied. The company has clarified that there is no impact on operational, financial, or other business activities due to this order or assessment.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015, in line with the company's Policy on the Determination of Materiality for Disclosure of Events or Information. This follows an earlier communication dated March 31, 2024, when the company first informed exchanges about receiving the initial assessment order.