Bajaj Finance, a leading non-banking financial company (NBFC), has received a massive GST notice of Rs 341 crore from the Directorate General of Goods and Services Tax Intelligence (DGGI). The notice alleges that the company has evaded GST payments, according to a report.
The DGGI has accused Bajaj Finance of violating GST norms by not paying taxes on the interest earned from its financial services. The company offers various financial products, including personal loans, credit cards, and consumer durable loans.
The GST notice is a significant blow to Bajaj Finance, as it may lead to a substantial tax penalty. The company has not commented on the matter yet, but it is expected to contest the notice.
This development comes at a time when Bajaj Finance is already facing challenges due to the economic slowdown. The company’s stock price has taken a hit in recent times, and this GST notice may further impact investor sentiment.
The DGGI’s action against Bajaj Finance is part of a broader crackdown on GST evaders. The government has been actively pursuing companies that have allegedly evaded GST payments, and this notice is a testament to its efforts.
The outcome of this case will be closely watched by the industry, as it may set a precedent for other companies operating in the financial services space. Bajaj Finance will need to navigate this challenge carefully to minimize the impact on its business and reputation.