Bajaj Finance Ltd. received a show cause notice from Kochi's Goods and Services Tax authorities. The authorities are demanding around Rs 342 crore as GST for the period from July 2017 to March 2024, and they also want an equal amount in penalties and interest until the tax is paid, according to an exchange filing on Monday.
The notice claims that the interest charged to customers in business-to-business transactions should be considered a service fee and thus subject to GST, the filings said.
The Pune-based non-banking financial company is working with tax experts and lawyers to respond to this notice. They don’t expect it to have a major impact on their business, it said.
Also, there hasn’t been any significant change in the company's stock price since the news went public on Aug. 9, 2024.
Shares of Bajaj Finance closed 0.13% lower at Rs 6610.30 apiece, compared to a 0.07% fall in the benchmark BSE Sensex.
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