Bajaj Auto hit with over ₹10 crore GST penalty, plans legal challenge

In a regulatory filing, Bajaj Auto explained that the Joint Commissioner of Central GST, Pune – II Commissionerate, ruled that the instrument cluster should be classified under HSN code 8708/8714 for the period between July 2017 and March 2022. However, Bajaj Auto had been using HSN code 9029.

As a result, the tax authority has demanded a differential GST payment of ₹10,03,91,402 which has been adjusted against the tax already paid by the company. Additionally, the company has been charged an interest and penalty of ₹10,03,91,402, along with a general penalty of ₹25,000. This brings the total penalty to ₹10,04,16,402.

Also Read : Bajaj Pulsar RS200 sports bike updated after 10 years, priced at ₹1.84 lakh: What’s new?

Bajaj Auto against decision

Bajaj Auto strongly disagrees with the ruling saying it is unfair and beyond the tax authority’s powers. The company also pointed out that the decision ignores an ongoing case in the Bombay High Court where Bajaj Auto has already challenged the tax notice.

Confident in its position, Bajaj Auto has stated that it will take legal action to overturn the ruling. The company also assured that this penalty does not have a major financial impact on its business.

In India, Bajaj Auto is one of the most prominent two-wheeler manufacturers selling models, including the well-renowned Chetak and Pulsar models. Recently the bike maker also became the first to introduce the world’s first factory-fitted CNG motorcycle.

Also Read : Chetak Electric and Triumph help Bajaj Auto grow by 6 per cent in Q3 of FY 2025

Bajaj Auto grew by 8 per cent

In its recent sales reports, Bajaj Auto Ltd also posted an 8 per cent year-on-year increase in its consolidated net profit in Q3 of FY25. The manufacturer also crossed the 5,00,000 unit mark in exports for the first time after nine quarters.

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First Published Date: 01 Feb 2025, 09:01 AM IST