Britannia Industries has disclosed that it has received a tax demand order of more than Rs. 25 crore from the Goods and Services Tax (GST) authorities over issues related to product classification and input tax credit (ITC).
In a regulatory filing, the company stated that the Additional Commissioner of Central Goods and Services Tax & Central Excise (CGST & CX), Kolkata North, has passed an order covering the tax periods from July 2017 to March 2023.
The order demands tax amounting to Rs. 25,41,73,150, along with an equivalent penalty and applicable interest. The demand stems from a show cause notice issued by the Directorate General of GST Intelligence (DGGI) on August 3, 2024.
The dispute primarily concerns the classification of a specific product sold by Britannia and the eligibility of input tax credit claimed on certain goods.
Britannia Industries clarified that the order is appealable and stated, “The company will take all necessary actions, including availing legal remedies as provided under the GST law.”
