Bajaj Electricals Limited Receives Order from the Office of the Assistant Commissioner of State Tax, Odisha Mohali
April 16, 2024 at 08:18 am EDT
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Bajaj Electricals Limited received an order dated April 15, 2024 from the Office of the Assistant Commissioner of State Tax, Odisha Mohali, (GST Authority), issued under Section 73 of the Odisha State Goods and Services Tax Act, 2017 ("OGST"), read in conjunction with the relevant sections of the CGST Act, 2017 and the IGST Act, 2017, involving an alleged total demand (aggregating to INR 24.5 million) for financial year 2018-19, based on the following grounds against the company: (i) alleged excess claim of input tax credit (ITC); (ii) alleged non- payment of interest towards the reversal of ITC; (iii) alleged in-eligible ITC availed; (iv) alleged inadmissible ITC claimed; (v) alleged short-discharge of tax liability in respect to transactions with SEZ unit; (vi) alleged excess claim of ITC under RCM head; (vii) alleged short discharge of tax liability, which includes a general penalty of INR 1.154 million (Order). The company is currently exploring various legal options and necessary steps, including challenging the said Order issued by the GST Authority before the relevant appellate authority. Please note that there is no impact on financial operations or any other activities of the Company due to this Order.
Bajaj Electricals Limited is engaged in the marketing of various consumer household and industrial goods. The Company operates through two segments: Consumer Products and Lighting Solutions. The Consumer Products segment is engaged in the manufacturing and trading of consumer durables products which includes fans, domestic appliances, kitchen appliances, and non-electrical kitchen aids. The Lighting Solutions segment is engaged in the manufacturing and trading of lighting products which includes light-emitting diode (LED) products, such as lamps, bulbs, battens and ceiling lights in consumer lighting and poles, high mast, street lighting, area lighting, in professional lighting. It also provides various fans comprising ceiling, pedestal, table, wall, personal, domestic, and others. It also involved in the engineering, procurement and commissioning of power transmission and power distribution infrastructure. It operates approximately 2,00,000 retail outlets.