Ask Jurishour AI

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
tdb_templates
saswp_reviews
saswp-collections
saswp_rvs_location
tdc-review-email
web-story-font
web-story
googlesitekit_email
tds_locker
tds_email
saswp
mailpoet_page
mailpoet_email
tdcpt_tunes
tdc-review
pronamic_payment
pronamic_gateway
pronamic_pay_subscr
wpcode
HomeGSTGST Intelligence Issues Show-Cause Notice to Dabur Over Hajmola Classification

GST Intelligence Issues Show-Cause Notice to Dabur Over Hajmola Classification

Published on

🚀 Stay Connected With JurisHour

WhatsApp X Telegram

Dabur’s iconic digestive product, Hajmola, has come under fresh regulatory scrutiny as the Directorate General of GST Intelligence (DGGI) has issued a show-cause notice to the company over its tax classification. At the heart of the matter lies the question: Should Hajmola be taxed as a regular candy or as an Ayurvedic formulation?

Sources confirmed to businessline that the show-cause notice was served following the conclusion of a detailed investigation. Prior to this, Dabur had been summoned by the DGGI and had submitted its responses during the inquiry. The classification dispute holds significant tax implications — while regular candies attract an 18% GST, Ayurvedic formulations are taxed at a lower rate of 12%.

The company, known for positioning Hajmola as a traditional digestive aid, has so far not issued a comment on the latest developments.

This is not the first time the classification of Hajmola has come under legal review. During the pre-GST era, a similar controversy reached the Supreme Court. In 2002, the apex court upheld a decision by the then CEGAT (now CESTAT), which ruled that Hajmola Tablets were to be considered Ayurvedic medicines, reinforcing Dabur’s stance at the time.

With GST classification directly impacting tax liability, the latest move by the DGGI could potentially reopen a long-standing debate over how traditional consumer health products are treated under the modern tax framework.

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.

Latest articles

GST Appeal Can’t Be Rejected Without Addressing Taxpayer’s Grounds: Allahabad HC

The Allahabad High Court has set aside an appellate order concerning cancellation of GST...

GST Summons: Anticipatory Bail Maintainable Without Arrest Order, But Relief Denied In Evasion Case: Allahabad HC

The Allahabad High Court has held that the absence of a formal arrest order...

GST Appeal Can’t Be Decided Without Hearing Taxpayer’s Objections To Fresh Evidence: Allahabad High Court

The Allahabad High Court has set aside an appellate order upholding the cancellation of...

GST Demands Based On Omitted Rule 96(10) Cannot Survive: Allahabad High Court

The Allahabad High Court has set aside GST adjudication and appellate orders holding that...

More like this

GST Appeal Can’t Be Rejected Without Addressing Taxpayer’s Grounds: Allahabad HC

The Allahabad High Court has set aside an appellate order concerning cancellation of GST...

GST Summons: Anticipatory Bail Maintainable Without Arrest Order, But Relief Denied In Evasion Case: Allahabad HC

The Allahabad High Court has held that the absence of a formal arrest order...

GST Appeal Can’t Be Decided Without Hearing Taxpayer’s Objections To Fresh Evidence: Allahabad High Court

The Allahabad High Court has set aside an appellate order upholding the cancellation of...