GST authorities have issued a demand notice of ₹6.37 crore to Britannia Industries for alleged incorrect classification of goods supplied between FY 2020–21 and FY 2023–24. The company said it is evaluating the order and will pursue appropriate legal remedies.
According to a regulatory filing, the order was passed by the Office of the Commissioner of CGST & Central Excise, Thane, under Section 74 of the GST Act. The notice alleges non-payment of tax arising from what authorities termed as “incorrect classification” of certain goods during the specified period.
The total demand amounts to ₹6,37,20,000, comprising ₹2,12,40,000 towards tax and ₹4,24,80,000 as penalty, in addition to applicable interest.
Britannia stated that the order is appealable and confirmed that it will take necessary steps under the provisions of the GST law, including filing an appeal. The company also clarified that the demand will have “no material impact on the financials, operations or other activities” of the business.
One of India’s leading bakery and packaged food manufacturers, Britannia owns several popular brands including Good Day, Tiger, NutriChoice and Marigold.
The development comes amid heightened scrutiny by GST authorities over product classification across the FMCG sector, particularly in categories where tax rates vary based on composition and positioning.