Britannia's Rs 25 Crore GST Challenge: A Tax Classification Dispute

Britannia Industries Ltd has been ordered to pay over Rs 25 crore by the GST authority for issues related to the classification of a product and input tax credits from July 2017 to March 2023. The company plans to appeal, leveraging legal options available under GST law.

Britannia Industries Ltd is facing a significant tax demand of over Rs 25 crore from the Goods and Services Tax (GST) authority, regarding the classification of a product and input tax credits. The order, issued by the Additional Commissioner of CGST & CX, Kolkata North, covers tax periods from July 2017 to March 2023.

The demand for Rs 25.41 crore, inclusive of penalties and interest, follows a directive from the Directorate General of GST Intelligence, dated August 3, 2024. The issue primarily revolves around how a certain product sold by Britannia is classified under GST norms, alongside input tax credits on specific goods.

Responding to the regulatory challenge, Britannia Industries Ltd has indicated its intention to contest the order. The company stated it would explore all available legal remedies, asserting that the order is subject to appeal based on its legal merits.

(With inputs from agencies.)