Britannia Gets ₹25.42 Crore GST Demand Over Alleged Wrongful ITC Claims
Britannia Industries has received a Rs. 25.42 crore GST demand over alleged wrongful input tax credit claims and a 2.37% dip in its share price
In a regulatory filing on Thursday, Britannia Industries Ltd informed that it has received a Goods and Services Tax (GST) demand order of Rs. 25.42 crore from the Additional Commissioner of CGST & Central Excise, Kolkata North, citing alleged wrongful input tax credit (ITC) claims and product misclassification. The order was issued under Section 74 of the Central Goods and Services...
In a regulatory filing on Thursday, Britannia Industries Ltd informed that it has received a Goods and Services Tax (GST) demand order of Rs. 25.42 crore from the Additional Commissioner of CGST & Central Excise, Kolkata North, citing alleged wrongful input tax credit (ITC) claims and product misclassification.
The order was issued under Section 74 of the Central Goods and Services Tax Act, 2017, following a Show Cause Notice (SCN) served by the Directorate General of GST Intelligence (DGGI) on August 3, 2024.
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Order Details
- Issuing Authority: Additional Commissioner, CGST & CX, Kolkata North
- Order Date: April 30, 2025
- Tax Demand: Rs. 25.42 crore
- Includes: Equivalent penalty and applicable interest
- Period Covered: July 2017 – March 2023
- Key Issues:
- Disputed classification of a product sold by the company
- Ineligible input tax credit claimed on certain goods
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Britannia’s Response
The company stated that the order does not have a material impact on its financials or operations and clarified that it would be challenging the order through legal remedies.
“The order is appealable on legal merits, and the Company shall take necessary actions under GST law,” said T.V. Thulsidass, Company Secretary, in the exchange filing.
Britannia expressed that it remains compliant with applicable laws and will pursue all available avenues to address the matter.
Stock Market Reacts with Mild Pressure
Shares of Britannia Industries reacted negatively to the news, closing 2.37% lower on the NSE. The stock opened at Rs. 5,380.00 and hit a low of Rs. 5,276.50 during intraday trading. It settled at an indicative close of Rs. 5,307.50, down Rs. 129.00 from the previous day’s close of Rs. 5,438.90.
The company reassured investors about the limited financial impact, but the regulatory scrutiny triggered a modest decline in investor sentiment.
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