Bajaj Consumer Care Gets ₹27.23 Lakh GST Notice Over Credit Mismatch

Well, the latest news about Bajaj Consumer Care—the popular brand behind Bajaj Almond Drops Hair Oil—shows that even established businesses are not immune to the challenges of GST compliance.

Recently, Bajaj Consumer Care received a GST demand notice of ₹27.23 lakh due to an alleged GST credit mismatch identified by the tax authorities in Odisha. Let’s break down what happened, why it matters, and what every business can learn from this case.

What Happened?

The Office of the Assistant Commissioner of State Tax, Cuttack-I, West Circle, Odisha, issued a demand notice to Bajaj Consumer Care seeking:

• ₹27,23,684 in unpaid GST, and

• ₹2,72,368 as penalty under Section 73 of the CGST Act, 2017.

The authorities discovered a credit mismatch—this means the input tax credit (ITC) Bajaj claimed did not align with the details submitted by their suppliers in their GST returns.

Understanding GST Credit Mismatch: Why It Happens

In India’s GST system, businesses can claim Input Tax Credit for the GST paid on purchases. However, this works only if:

1. The supplier files their GST returns correctly.

2. The transaction appears in the buyer’s GST portal (GSTR-2A/2B).

If there’s a mismatch (for example, the supplier forgets to file or files incorrectly), the buyer’s credit claim can be questioned.

Common reasons for GST mismatches:

• Supplier failed to file or delayed filing returns.

• Typographical errors in invoices or GSTIN.

• Goods or services not recorded accurately.

Bajaj Consumer Care’s Reaction: No Major Impact

In its official statement, Bajaj Consumer Care assured that:

✅ The demand won’t impact their financial position, daily operations, or future plans.
✅ The order is appealable—and the company is in the process of challenging it before higher authorities.
✅ They are fully committed to complying with tax laws.

The company’s Head (Legal) and Company Secretary, Vivek Mishra, confirmed that appropriate legal steps are being taken to resolve the matter.

What is Section 73 of the CGST Act?

The demand notice was issued under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017, which deals with:

• Tax shortfalls or wrong ITC claims made without fraudulent intent.

• Allows authorities to raise demands and levy penalties when discrepancies are found.

This is different from Section 74, which deals with cases involving fraud or deliberate evasion.

Why Does This Matter for Businesses?

This case highlights how GST compliance can become complicated, even for well-established brands. It’s a reminder that:

👉 Businesses must regularly reconcile their purchases with GSTR-2A/2B.
👉 Vendors must be encouraged to file GST returns on time.
👉 Every GST claim should be cross-checked and documented properly.

Failing to do so can lead to tax demands, penalties, and legal hassles—even if it’s due to human error or oversight.

What’s Next for Bajaj Consumer Care?

While ₹27.23 lakh may not be a huge amount for Bajaj Consumer Care, the company is taking the matter seriously by appealing the order and ensuring regulatory compliance.

They remain confident that the issue will be resolved without any significant financial impact.

Key Lessons for Small and Large Businesses Alike:

✅ Don’t assume suppliers are filing correctly—verify regularly.
✅ Reconcile GST data every month.
✅ Keep detailed documentation of every transaction.
✅ Seek professional advice when discrepancies arise.

Conclusion: GST Compliance is Everyone’s Business

The Bajaj Consumer Care GST case is a valuable lesson for the entire business community:
No one is too big to fall into GST traps.

With India's evolving GST laws and increased government scrutiny, every business—big or small—needs to stay vigilant, proactive, and compliant.

FAQs

Q1. What is a GST credit mismatch?
It’s when the GST input claimed by a business doesn’t match the data filed by the supplier.

Q2. What is Section 73 of CGST?
It allows tax authorities to issue demands for unpaid tax or wrong ITC without fraud involved.

Q3. Can the Bajaj Consumer Care order be appealed?
Yes, the company is currently contesting the demand before the appellate authority.

Q4. Does this affect Bajaj Consumer Care’s business?
No, the company has clarified that this will not impact its financials or operations.

Q5. How can businesses avoid such GST issues?
By reconciling GST returns monthly, ensuring supplier compliance, and keeping proper records.