Britannia Industries Confronts ₹3.7 Million GST Demand from Central Tax Authorities

Britannia Industries Limited, a leading player in India's food industry, has received a tax demand order totaling ₹3.7 million from the Central Goods and Services Tax (CGST) department. The order, issued by the Assistant Commissioner of CGST & CX, Vaishali Division, Hajipur, Bihar, cites alleged mismatches in input tax credit claims.

 

The breakdown of the demand includes ₹86.32 lakh in tax and ₹8.63 lakh in penalties, amounting to a total of ₹94.95 lakh. Interest applicable on the amount is yet to be quantified. The order was passed under Section 73 of the CGST Act, 2017, which pertains to tax demands arising from non-fraudulent discrepancies.

 

Britannia Industries has stated its intention to challenge the order through appropriate legal channels, emphasizing that the order is appealable under GST law. The company is expected to file an appeal with the relevant appellate authority.

 

This development follows a series of similar tax demands faced by Britannia in recent months. In January 2025, the company received a demand of ₹4.32 crore from the Additional Commissioner of Central Tax, Delhi (North), related to input tax credit and tax rate disputes. Additionally, a ₹2.53 crore demand was issued by the Assistant Commissioner of CGST, Kala Nagar Division, Delhi North, citing disallowed transactional credits.

 

Despite these challenges, Britannia Industries maintains that these tax demands do not have a material impact on its financials or operations. The company continues to address these issues through the legal avenues available under the GST framework.

 

Sources: ETLegalWorld, ET Now