Britannia Receives Rs 25 Crore GST Demand Over Product Classification and Tax Credit Claims

Britannia Industries Ltd., a major player in the Indian food industry, has been hit with a tax demand exceeding Rs 25 crore by the Goods and Services Tax (GST) department, following a dispute over the classification of one of its products and claims related to input tax credits.

In a regulatory disclosure on Thursday, the FMCG major said the Additional Commissioner of Central GST and Central Excise (CGST & CX), Kolkata North, issued the order covering the tax periods from July 2017 to March 2023.

According to Britannia, the order seeks recovery of ₹25.41 crore in taxes, along with an equal amount in penalties and applicable interest — all linked to the categorization of a particular product and certain input tax credits claimed during the relevant period.

Also Read: Food Trends That Will Never Perish But Will Continue To Evolve | Republic World

This development follows a show cause notice issued to the company by the Directorate General of GST Intelligence (DGGI) on August 3, 2024. The notice alleged discrepancies in how the company had classified a specific item and in its claims for tax credits on select purchases.

Responding to the order, Britannia said it plans to pursue available legal options. “The company will take necessary actions, including exercising the legal remedies under the GST law,” it stated in the filing. The order is subject to appeal, and Britannia has indicated that it will contest the demand on legal grounds.

Britannia Industries Limited is a leading Indian food company established in 1892, known for its diverse range of products including biscuits, bread, cakes, and dairy products. They are a trusted brand in India and are also available in over 80 countries.