Aditya Birla Fashion Receives New Tax Notice of ₹16.4 Million

Aditya Birla Fashion and Retail Ltd, India's leading apparel retailer with brands like Pantaloons and TMRW, has received another GST demand order totaling ₹16.4 million (₹1.64 crore). This includes tax liability, interest, and penalty, continuing a series of scrutiny on input tax credit (ITC) claims and procedural matters. ABFRL maintains the demand lacks merit and will pursue appeals, ensuring no disruption to operations or finances.​

 

The notice aligns with prior cases, such as ₹2.45 crore (Dec 2024) and ₹2.46 crore (Nov 2024) from Chandigarh GST authorities over ITC misclassification under IGST vs. CGST/SGST, plus smaller orders like ₹70 lakh from Goa (Feb 2025). These stem from vendor return defaults and audit findings under CGST Act Section 74. Despite robust Q4FY25 growth—revenues up 9.2% YoY to ₹1,720 crore driven by ethnic wear (19% rise)—such demands test governance amid demerger into Aditya Birla Lifestyle Brands Ltd. Investors eye resolution timelines.​

 

Key Highlights

Sources: Reuters, Economic Times, Marketscreener, ABFRL Filings