Bajaj Finance announced on Monday that it has been issued a show cause notice regarding a GST demand of Rs 342 crore. In a disclosure to the BSE, Bajaj Finance stated that the Director General of GST Intelligence (DGGI), Kochi Zonal Unit, has issued a show cause notice (SCN) alleging that the fixed upfront interest collected from customers in B2B transactions should be classified as a fee/service charge and, therefore, subject to GST.
The GST amount cited in the aforementioned SCN stands at Rs 342 crore (excluding interest and penalties) for the period from July 2017 to March 2024," the company stated.
The DGGI has also recommended a penalty and interest of an equivalent amount until the tax is fully paid. The company is currently preparing a response to the SCN to defend its position.
Shares of Bajaj Finance ended at Rs 6610.30 on the BSE, reflecting a 0.13 percent decline from the previous close.
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