Bata India Faces Rs 29.69 Lakh GST Penalty for Input Tax Credit Claims

Bata India Limited , a leading footwear manufacturer and retailer, has received a demand order from the Office of the Deputy Commissioner in Bengaluru, Karnataka, imposing a penalty of Rs 29.69 lakh for alleged irregularities in Input Tax Credit (ITC) claims under the Central Goods and Services Tax (CGST) Act, 2017.

Key Details of the Demand Order

Item	Detail
Authority	Office of the Deputy Commissioner, Bengaluru, Karnataka
Nature of Order	Demand Order in FORM GST DRC - 07 under the CGST Act, 2017
Financial Year	2022-23
Date of Order	November 5, 2025
Penalty Amount	Rs 29,69,527
Additional Demands	Tax and interest (amounts not specified)

Alleged Violations

The demand order states that Bata India's Input Tax Credit claims were not in accordance with applicable laws for the financial year 2022-23. The specific details of the alleged non-compliance have not been disclosed in the company's regulatory filing.

Company's Stance

Bata India Limited has expressed confidence in its position, stating:

"The company believes it has a good case to defend the matters before the appropriate authorities without any material financial impact."

Potential Impact

While the penalty amount of Rs 29.69 lakh may not be significant for a company of Bata's size, the additional demands for tax and interest could potentially increase the financial implications. However, the exact amounts for these additional demands have not been specified in the disclosure.

Next Steps

Bata India is likely to appeal the order before the appropriate authorities. The company's statement suggests that it plans to contest the allegations and the imposed penalty.

Investor Considerations

Investors and stakeholders should note that:

The penalty amount alone may not significantly impact Bata India's financials.
The outcome of any appeal process could affect the final financial implications.
The company's confidence in its defense suggests it may have strong grounds to challenge the order.

As this situation develops, Bata India may provide further updates on the progress of its appeal and any potential financial impact on the company's operations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.02%	-3.07%	-12.88%	-18.48%	-21.29%	-29.07%

Mirae Asset Mutual Fund has significantly increased its shareholding in Bata India , a prominent footwear company, through recent open market transactions. The move underscores the fund's growing interest in the footwear sector and potentially signals confidence in Bata India's market position.

Key Transaction Details

Aspect	Before Transaction	After Transaction
Shareholding Percentage	9.37%	9.78%
Number of Shares	12,044,603	12,573,884
Shares Acquired	-	529,281

Transaction Implications

The acquisition of 529,281 shares by Mirae Asset Mutual Fund represents a notable increase in their stake in Bata India. This move has pushed their shareholding from 9.37% to 9.78%, indicating a strategic enhancement of their position in the company.

Regulatory Compliance

The disclosure of this transaction aligns with the Securities and Exchange Board of India (SEBI) regulations concerning substantial acquisition of shares and takeovers. Such transparency is crucial for maintaining market integrity and keeping investors informed about significant changes in ownership structures.

Market Presence

Bata India's shares are listed on the National Stock Exchange, providing liquidity and accessibility to investors. The increased stake by a major mutual fund like Mirae Asset could potentially influence market perception of the stock.

This development may be of interest to investors and market analysts tracking the footwear industry and institutional investment patterns in the Indian equity market. However, as with all investment decisions, it's essential for individuals to conduct their own research and consider their financial goals before making any investment choices.