One of India's leading two-wheeler manufacturers, Bajaj Auto, has been slapped with a tax demand of Rs 1,38,53,14,020 under the Maharashtra GST Act, the automaker revealed in a regulatory filing. The Order issued by the Deputy Commissioner of State Tax, Pune, states that the tax demand has been made due to "differential tax liability" between specific HSN classifications of auto parts manufactured by the company.Also Read: Hero Xpulse 210 Bookings To Commence From March 20thWhat The Tax Order StatedThe Order states, "The Company has received the Order with tax demand amounting to Rs. 1,38,53,14,020. The tax demand mainly relates to differential tax liability between specific HSN classification adopted by the Company with GST rate of 18% as against general HSN classification of auto parts alleged by tax authorities with GST rate of 28%. According to tax authorities, Company being a manufacturer of automobiles, the entire spare parts being customised product, used only in manufacturing of vehicles would get classified as auto parts at GST rate of 28% disregarding the principle of general rules of interpretation. The Order also imposes applicable interest and penalty of Rs 13,85,49,375."Also Read: Ultraviolette Announces Entry Into Multiple Two-Wheeler SegmentsBajaj Auto's ResponseBajaj Auto has challenged the merits of the Order. "The Company believes that it has strong case on merits as it has been consistently classifying its parts and accessories over more than 3 decades following the General Rules of Interpretation, relevant section notes, chapter notes and HSN Explanatory notes which are supported by various judicial precedents. Such specific HSN classification has been accepted by the tax authorities over the years. Therefore, Company believes that the Order lacks merit and stated tax demand is not maintainable as per law." the regulatory filling stated. It further added,"The said Order is an appealable order and the Company has initiated appropriate legal action as per law. The Company does not expect any material impact on its financials, operations or other activities." Latest News opinionVaccine Breakdown and A Nation In Mourning: Questions Haunt Yunus-Era Health PoliciesindiaIndia, Not Pakistan, Better 'Long-Term Mediator': Russia Backs Delhi For War TalksvideosGlobal War Fallout: 77 Days After US-Iran War, Inflation Fears Rise In India After Fuel Price Hikeauto5 Reasons Why Ather Rizta Is One Of India's Favourite Family Scooter?indiaPM Modi’s UAE Visit Delivers Big Wins For India: Defence, Oil, $5 Billion Investmentscity‘Noteon Ka Pahad’: Cash Rain At Gujarat Folk Event Goes Viralindia'Bargained For Release': Rahul Gandhi Links Adani Relief To India-US FTAentertainment newsSudhanshu Saria On Backing Pech, Silverfish: Extremely Audience-Friendly Films | ExclusiveAyush Arya authorAyush's love for automobiles started with his grandfather's old Suzuki. This early initiation transformed into a passion for cars and anything with an... View MoreNewsAutoBike NewsEnd of Article
