Bajaj Finserv Limited — Important, 26-01-2025: Updates

Bajaj Finserv's subsidiary, Bajaj Finance Limited, has received an order from the Joint Commissioner of Central Tax in Pune confirming a GST demand of ₹341.28 crore related to upfront interest fees from loans offered for consumer durable purchases. This demand covers the period from July 2017 to March 2024 and comes with an additional interest liability of ₹180.59 crore and a potential penalty of ₹341.28 crore. The company is preparing to file an appeal against the order, supported by the opinion of tax experts asserting that the demand is not tenable. This situation necessitates close monitoring as it poses a significant financial implication for Bajaj Finance and may impact investor sentiment.