Bajaj Electricals Limited has disclosed receiving a GST assessment order from Tamil Nadu authorities demanding ₹936.38 lakh for alleged tax irregularities pertaining to FY 2018-19. The company made this disclosure under Regulation 30 of SEBI Listing Regulations on December 31, 2025.

Assessment Order Details

The assessment order was issued by the Office of the Commercial Tax Officer, Chennai Central, Tamil Nadu, under Section 74 of the Tamil Nadu Goods and Services Tax Act, 2017. The company received the order on December 31, 2025, at 16:02 hours.

The demand breakdown is structured as follows:

Grounds for Assessment

The GST Authority has raised the demand on various grounds alleging short payment of tax liability by the company for FY 2018-19. The primary issue relates to the disallowance of input tax credit (ITC) claimed by the company during the said period.

Company's Response and Legal Options

The management is currently evaluating appropriate legal options to contest the assessment order. The company has indicated that these options include filing an appeal before the appropriate appellate authority or tribunal against the order.

Financial and Operational Impact

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

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and in accordance with the company's Policy on the Determination of Materiality for Disclosure of Events or Information. The communication was signed by Prashant Dalvi, Chief Compliance Officer and Company Secretary.

Bajaj Electricals Limited has received an unfavorable ruling from the GST appellate authority, with its appeal against a tax assessment order being rejected. The company disclosed this development under SEBI Listing Regulations on December 30, 2025.

GST Appeal Outcome

The Commissioner (Appeals), Central Excise & GST, Jaipur issued an Order-In-Appeal dated December 18, 2025, which the company received on December 29, 2025. The appellate authority rejected all submissions made by Bajaj Electricals during the appeal proceedings and upheld the original assessment order.

Background of the Case

The original assessment order was issued by the Assistant Commissioner, CGST Division – I, Jaipur under Section 73 of the GST Act, 2017. The GST authority had imposed the demand primarily due to disallowance of credit notes, prompting Bajaj Electricals to file an appeal before the appellate authority. The company had based its appeal on judgments from the Hon'ble High Court, seeking relief from the imposed demand and penalties.

Company's Response and Next Steps

Bajaj Electricals management is currently evaluating available legal options following the adverse appellate order. The company indicated that it may file an appeal before the appropriate tribunal against the Order-In-Appeal, continuing its legal challenge against the GST demand.

Financial Impact Assessment

The company has clarified that this GST matter does not impact its financial operations or other business activities. Despite the adverse ruling and the outstanding demand of ₹61.18 lakh, Bajaj Electricals maintains that its regular business operations remain unaffected by this regulatory issue.

The disclosure was made in compliance with Regulation 30 of SEBI Listing Regulations, demonstrating the company's commitment to transparency regarding material developments that could affect stakeholder interests.