Bajaj Finance gets Rs.341 crore GST ’evasion’ notice from DGGI, faces massive penalty bill: Report
Bajaj Finance has received a Rs.341 crore show-cause notice from the Directorate General of Goods and Services Tax Intelligence (DGGI) alleging tax evasion by wrongfully categorising a service charge as an interest charge in an August 3 notice, as per an Economic Times report.
“Intelligence collected reveals that Bajaj Finance Ltd is evading GST by wrongly treating services/processing charges as interest to avail the benefit of exemption provided under central tax rules,” the report cited the 160-page notice stating.
Bajaj Finance did not respond to queries, the report said.
Livemint could not independently verify the report.
The financial services company is facing a total fine of around Rs.850 crore — 100 per cent penalty for the alleged Rs.341 crore tax evasion, Rs.150 crore of interest, and Rs.16 crore daily interest until payment is completed, the report added. The period for the alleged invasion is June 2022 to March 2024.
