Bajaj Auto has received a tax demand exceeding ₹3.5 crore from Assam's tax authorities for the financial year 2021–22. The demand pertains to an alleged excess claim of Input Tax Credit (ITC) in the company's GSTR-3B returns compared to GSTR-2A. The company plans to appeal the order, asserting compliance with all Goods and Services Tax (GST) regulations. Despite the notice, Bajaj Auto anticipates no significant financial impact and remains focused on its operational objectives.
Details of the Tax Demand
On October 7, 2025, Bajaj Auto disclosed in a regulatory filing that it had received a demand notice from Assam's tax authorities. The notice alleges that the company claimed an excess ITC of ₹3,51,87,014 during FY 2021–22, leading to a tax demand of the same amount. Additionally, an interest and penalty of ₹35,18,701 have been levied, totaling the demand to ₹3,87,05,715.
The discrepancy arises from a mismatch between the ITC claimed in GSTR-3B and the details available in GSTR-2A, which reflects the input tax data reported by suppliers.
Company's Response and Legal Intentions
Bajaj Auto has expressed its intention to challenge the tax demand through appropriate legal channels. The company maintains that it has adhered to all GST provisions and that the claimed ITC was legitimate. Bajaj Auto is currently evaluating its options for filing an appeal before the relevant appellate authority.
In its communication, the company emphasized that it does not foresee any material adverse effect on its financial position due to this demand.
Context and Implications
This development adds to a series of similar tax-related issues faced by Bajaj Auto. Earlier this year, the company received a ₹138 crore tax demand from Maharashtra's tax authorities for alleged discrepancies in tax payments. Bajaj Auto is actively pursuing legal avenues to address these matters.
While such tax demands are not uncommon in large corporations, they highlight the complexities and challenges associated with GST compliance and the reconciliation of input tax credits.
Conclusion
Bajaj Auto's receipt of a ₹3.5 crore tax demand from Assam's tax authorities underscores the ongoing scrutiny of GST compliance among businesses. The company's decision to appeal the order reflects its commitment to ensuring adherence to tax regulations and protecting its financial interests. Stakeholders will be closely monitoring the progression of this case and its potential implications for the company's operations and financial standing.
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