Godfrey Phillips India Ltd Faces Massive Tax Order, Hopes To Appeal

Godfrey Phillips India Ltd, one of India's major cigarette makers, has been served with a huge tax order for an aggregate demand of ₹166 crore. This also includes a demand of ₹70.34 crore under GST, a GST Compensation Cess demand of ₹12.56 crore, and ₹82.90 crore as a penalty. This order was delivered by the Office of the Commissioner of CGST and Central Excise, Belapur, Navi Mumbai, on account of suspected undervaluation of merchandise resulting in deficit payment of taxes.

 

Key Highlights:

 

Total Demand: ₹166 crore, comprising GST, GST Compensation Cess, and penalty.

 

GST Demand: ₹70.34 crore.

 

GST Compensation Cess: ₹12.56 crore.

 

Penalty: ₹82.90 crore.

 

Cause: Undervaluation of goods alleged.

 

Company Response: Intends to appeal against the order, adding that it won't have a material impact on financials.

 

In spite of the huge financial impact, Godfrey Phillips India Ltd has ensured that the order will not have a material impact on its overall financial performance or business operations. The company is considering legal recourse, including filing an appeal against the order. Investors have been cautious, with the share price of the company falling.

 

Sources: Angel One, Bajaj Broking, CNBC-TV18