Britannia Industries Faces ₹1.1 Billion GST Demand, Penalty from Chennai Tax Authority

Britannia Industries Ltd has informed the exchanges regarding a tax demand order received from the Office of the Principal Commissioner of CGST & Central Excise, Chennai North Commissionerate.

According to the regulatory filing submitted pursuant to Regulation 30 of the SEBI Listing Regulations, 2015, the company received the order passed by the Additional Commissioner of CGST & Central Excise, Chennai North Commissionerate. 

The authority passed the order under Section 74 of the Central Goods and Services Tax Act, 2017. The order appeals to an alleged contravention spanning six financial years, specifically covering the period from 2018-19 to 2023-24, regarding the incorrect availment of input tax credit.

The authority has demanded a tax payment of approx ₹1.1 billion (₹1,085,024,763). In addition to the tax demand, the order imposes an equivalent penalty amounting to another ₹1.1 billion, alongside applicable interest.

Britannia Industries stated in the filing that there is no significant impact on the financials, operations, or other activities of the company on account of this order. The company confirmed that the order is appealable under the GST law. Britannia Industries intends to take necessary actions, including exercising all legal remedies available to challenge the direction.