Tax Relief Secured: Bajaj Electricals Gets Interest and Penalty Waiver on GST Demand

Image Source : Bajaj Group

Bajaj Electricals Ltd has received a favorable order under Section 128A of the CGST Act, waiving interest and penalty components on a previously contested GST demand. The development significantly reduces the company’s tax liability for FY2017–18 and concludes a long-standing litigation under the Odisha and Central GST Acts.

Key Highlights From the Order

- The original GST demand of Rs 1.48 crore was reduced to Rs 6.09 lakh by an appellate authority in December 2024
- The revised demand included Rs 3.07 lakh in tax, Rs 2.67 lakh in interest, and Rs 0.35 lakh in penalty
- On April 24, 2025, the Assistant Commissioner of State Taxes, Odisha, issued a final settlement order waiving the interest and penalty
- The company intends to pay the reduced tax amount in full under the Government of India’s Amnesty Scheme
- The matter pertains to the financial year 2017–18 and is now considered closed with no impact on operations

Regulatory Context and Strategic Implications

- The waiver was granted under Section 128A of the CGST Act, introduced to resolve legacy tax disputes from FY2017–20
- Bajaj Electricals has been actively leveraging regulatory avenues to streamline its tax obligations and improve compliance posture
- The company confirmed that the development will not affect its financials or ongoing business activities

Sources: Economic Times LegalWorld, BSE India, Bajaj Electricals Ltd regulatory filings, NSE India, CBIC Circular No. 238/32/2024-GST, Reuters India Business Feed