Britannia Industries Faces Significant Tax Demand and Penalty
Published on May 1, 2025, at 04:20 PM IST
Overview of the Tax Demand
Britannia Industries Limited, a prominent entity in the Indian food sector, has been served an order by the Additional Commissioner of CGST & CX, Kolkata North. The directive demands a tax payment of ₹25,41,73,150 along with a corresponding penalty and interest.
Details of the Order
This tax order was issued under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017. It follows a Show Cause Notice from the Directorate General of GST Intelligence, dated August 3, 2024. The subject of the notice was the classification of certain products offered by Britannia and its claimed input tax credits during the periods from July 2017 to March 2023.
Company’s Response
In its regulatory filing, dated April 30, 2025, Britannia Industries stated that it finds the order subject to appeal based on legal grounds. The company has conveyed its commitment to pursue all necessary legal remedies available under GST legislation. “The Order is appealable on legal merits, and the Company shall take necessary actions including exercising the legal remedies available under GST law,” the company affirmed.
Implications of the Order
The significant amount claimed by the authorities reflects ongoing scrutiny within the food industry regarding tax compliance. Britannia’s proactive approach to addressing the order highlights the complexities faced by major companies in maintaining compliance amidst evolving regulations.
