Major FMCG Giant Britannia faces Rs 6.37 Cr GST Demand Over Alleged Tax Dues
Major FMCG Giant Britannia faces Rs 6.37 Cr GST Demand Over Alleged Tax Dues
Britannia Industries Limited, one of the popular food companies, has informed the stock exchanges that it has received a GST order from the Thane GST Department raising a demand of Rs 6.37 crore along with tax, penalty and applicable interest.
The order is received from the Joint Commissioner of CGST & Central Excise, Thane, on March 2nd, 2026, and it relates to FY 2020-21 to FY 2023-24.
Background of Case
As per the order received from the Joint Commissioner of CGST & Central Excise, Thane, the company wrongly classified the goods supplied.
Due to this misclassification, the department alleged that the Britannia had failed to pay the tax liability. As a result, the department has passed an order under section 74 of the GST Act raising tax and penalty amounting to Rs 2,12,40,000 and Rs 4,24,80,000, respectively, along with a demand of Rs 6,37,20,000 and applicable interest.
Key Detail of the order
| Particular | Details |
| Authority issuing the order | Joint Commissioner of CGST & Central Excise, Thane 3rd & 5th Floor, Accel House, Road No. 22, Wagle Industrial Estate, Thane 400604 |
|
Section |
Section 74 of the CGST Act, 2017 |
| Period | FY 2020-21 to FY 2023-24 |
| Tax demand | Rs 2,12,40,000 |
| Penalty | Rs 4,24,80,000 |
| Total demand | Rs 6,37,20,000 plus applicable interest |
| Date of receipt | March 2, 2026 (via email at 10:14 am) |
Financial Impact
Britannia has stated that there is no significant impact on the company’s operations, financials or other activities due to the receipt of this order.
Next Step of Company
Britannia said that the order is appealable. Therefore, it had decided to take the necessary steps, such as using the legal remedies under the GST law.
Company’s Disclosure Requirement
The company made the disclosure to both BSE Limited and the National Stock Exchange of India Limited under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.