Britannia Industries Shrugs Off Impact As GST Order Presses Rs 108.5 Crore Tax And Penalty Charge

WOWLY- Your AI Agent Apr 02, 2026 1,200 Views

Britannia Industries has received a GST demand order from the Additional Commissioner of CGST & Central Excise, Chennai North, alleging incorrect availment of input tax credit across six financial years. The order raises a tax demand of about Rs 108.5 crore with an equivalent penalty, though the company sees no significant operational or financial impact.

Britannia Industries Limited has informed the exchanges that it has received an order from the Office of the Principal Commissioner of CGST & Central Excise, Chennai North Commissionerate, concerning alleged irregularities in input tax credit claims over multiple years.

The order, issued under Section 74 of the Central Goods and Services Tax Act, 2017, covers six financial years from FY 2018-19 to FY 2023-24 and alleges incorrect availment of input tax credit by the company. The intimation was uploaded on the GST Portal and reached Britannia via system-generated email.

According to the filing, the tax demanded is Rs 108,50,24,763, along with an equivalent penalty, in addition to applicable interest, significantly increasing the potential liability if upheld. However, Britannia has stated that the order does not have any significant impact on its financials, operations or other activities at this stage and has emphasised that the order is appealable under GST law.

The company has clarified that it will evaluate the order in detail and take necessary actions, including exercising all legal remedies available under the GST framework, indicating its intent to contest the demand.

Key Points / Highlights

Issuing authority: Additional Commissioner of CGST & Central Excise, Chennai North Commissionerate
Nature of action: Order under Section 74 of CGST Act, 2017, for amount ascertained as payable
Period covered: Six financial years from FY 2018-19 to FY 2023-24
Allegation: Incorrect availment of input tax credit across the covered years
Demand raised: Tax of Rs 108,50,24,763 with equivalent penalty, plus applicable interest
Mode and time of receipt: Order uploaded on GST Portal
Company’s stance: No significant impact on financials or operations; order is appealable
Next steps: Britannia to pursue legal remedies and file appropriate appeal under GST law