Bajaj Electricals Limited Receives Order from the Office of the Commissioner of CGST and Central Excise, Chennai North Commissionerate
April 17, 2024 at 09:23 pm IST
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Bajaj Electricals Limited announced that the company has received an order dated April 15, 2024, from the Office of the Commissioner of CGST and Central Excise, Chennai North Commissionerate, (GST Authority), issued under Section 73 of the Tamil Nadu State Goods and Services Tax Act, 2017 (TNGST), 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 65.0 million) for financial year 2018-19, on the following grounds against the company: (i) alleged short payment of tax between the GSTR-3B and GSTR-1; (ii) alleged short payment of tax as per Table 9 of GSTR 9; (iii) alleged short payment of tax in respect of credit notes not declared in GSTR 1 but with tax liability reduced in the GSTR 3B; (iv) alleged discrepancy in RCM Input Tax Credit (`ITC') availed in the GSTR-3B versus RCM tax paid; (v) alleged difference in tax paid under RCM in the GSTR 3B versus tax liability under RCM as per GSTR 2A; (vi) alleged excess availment of ITC during the reconciliation of GSTR 2A and GSTR 3B; (vii) alleged ineligible ITC in respect of credit notes appearing in GSTR 2A; (viii) alleged ineligible ITC availed in respect of invoices/debit notes issued by suppliers who have not filed their GSTR-3B returns for the relevant tax period; (ix) alleged ineligible ITC availed in respect of supplies from taxpayers whose registrations have been cancelled retrospectively; (x) alleged non-payment of interest on ITC reversal declared in Table 12 of GSTR 9., which includes a general penalty of INR 8.107 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.