Britannia Industries Ltd, a leading food company, has received an order from the GST authority demanding a significant amount of over ₹25 crore. The order, passed by the Additional Commissioner of CGST & CX, Kolkata North, covers tax periods from July 2017 to March 2023. The demand includes tax, penalty, and applicable interest, totaling ₹25,41,73,150.
The order was issued in response to a show cause notice by the Directorate General of GST Intelligence, dated August 3, 2024. The notice pertained to the classification of a specific product sold by Britannia Industries and input tax credit for certain goods. The company has stated that the order is appealable on legal merits, indicating that it intends to challenge the decision.
Britannia Industries has announced that it will take necessary actions, including exercising available legal remedies under the GST law. This suggests that the company will likely appeal the order and dispute the tax demand. The company’s decision to appeal is likely based on its belief that the tax authority’s interpretation of the GST law is incorrect or that the demand is unjustified.
The GST authority’s order is a significant development, as it highlights the ongoing challenges faced by companies in India in navigating the complex GST regime. The case also underscores the importance of accurate classification of products and proper claiming of input tax credits to avoid disputes with tax authorities. Britannia Industries’ decision to appeal the order will likely be closely watched by other companies in the industry, as it may set a precedent for similar cases in the future.
It is worth noting that the order was passed on May 2, 2025, and the company has not disclosed any further details about the specific product or goods in question. The outcome of the appeal will depend on the merits of the case and the interpretation of the GST law by the appellate authorities. As the case progresses, it will be important to monitor developments and assess the implications for Britannia Industries and the broader industry.