GST authorities slap INR 6.37 cr demand notice on Britannia

GST authorities have issued a demand notice of INR 6.37 crore to Britannia Industries, and the company is exploring legal remedies.The bakery food company received the order from the Office of the Commissioner of CGST & Central Excise, Thane, on Monday, according to a regulatory filing from the company.

The order has been passed under Section 74 of the GST Act for FY 2020-21 to FY 2023-24, alleging non-payment of tax due to “incorrect classification” of goods supplied.“The tax and penalty

quantified in the order amount to INR 2,12,40,000 and INR 4,24,80,000 respectively, totalling to a demand of INR 6,37,20,000 in addition to the applicable interest,” Britannia said.However, this will have “no material impact on the financials, operations or other activities” of the company, said Britannia, which owns popular brands such as Good Day, Tiger, NutriChoice and MarieGold.“The order is appealable, and the company shall take necessary actions, including exercising the legal remedies available under the GST law,” said Britannia Industries.