Recently, Bajaj Finance has received a ₹341 crore show-cause notice from the Directorate General of Goods and Services Tax Intelligence (DGGI) alleging tax evasion on loan processing charges, as per an Economic Times report.
The consumer finance company faces 100% penalty for alleged ₹341 crore tax evasion from June 2022 to March 2024, ₹150 crore interest, and ₹16 lakh daily interest until payment is completed, making penalty up to ₹800 crore for the finance company.
The GST authorities has alleged that the finance company has willfully mis-declared services and processing charges on consumer loans for electronics, mobiles and automobiles as interests charges on EMIs to avail exemptions on GST levies.
