Aditya Birla Fashion and Retail Ltd (ABFRL) has been slapped with a Rs. 2.46 crore demand by the Goods and Services Tax (GST) authorities due to alleged misclassification of input tax credit (ITC) and return mismatches. The authorities claim that the company incorrectly claimed ITC under the Integrated GST category when it should have been distributed under Central GST (CGST) and State GST (SGST) categories. The demand, which includes tax, interest, and penalty, is based on an audit conducted under Section 74 of the Central Goods and Services Tax Act, 2017.
ABFRL plans to appeal the decision, claiming that its ITC claims were in line with the law. The company had filed a GST return which showed discrepancies between the monthly and annual returns, resulting in the demand. A similar case in Jammu & Kashmir has also led to a demand of Rs. 1.89 crore, which includes tax, interest, and penalty. The company is required to file monthly and annual GST returns and ensure that its vendors file their returns on time to avoid any discrepancies.