GST Sizzles The Pot: Orkla India Pulled Up Over Product Misclassification

Total demand: Rs. 2,45,99,783 (GST Rs. 84,80,472; Interest Rs. 76,38,839; Penalty Rs. 84,80,472)&nbsp;&nbsp;
Period covered: FY 2018-19 to FY 2023-24&nbsp;&nbsp;
Authority issuing order: Deputy Commissioner of State Tax, Kerala&nbsp;&nbsp;
Issue identified: Product misclassification under GST norms&nbsp;&nbsp;
Company stance: Orkla India intends to contest the order, anticipating no material impact&nbsp;&nbsp;

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Orkla India Limited has received a tax demand order of Rs. 2.46 crore from the Kerala State GST Department alleging misclassification of goods by its merged subsidiary Eastern Condiments Pvt. Ltd. for FY 2018-19 to FY 2023-24. The company plans to contest the order legally, expecting no material financial impact.