On May 1, 2025, Britannia Industries Limited announced the receipt of an official order from the office of the Additional Commissioner of CGST & CX, Kolkata North, following a Show Cause Notice issued by the Directorate General of GST Intelligence. The order pertains to the classification of certain products sold by the company and input tax credit issues under the Central Goods and Services Tax Act, 2017.

The tax period involved spans from July 2017 to March 2023. As per the order, Britannia has been directed to pay Rs. 25.41 crore, which includes the ascertained tax amount, an equivalent penalty, and applicable interest. The company has clarified that this order is based on violations related to the classification of certain goods and input tax credit claims.

Despite the order, Britannia Industries has stated that there is no material impact on its financials, operations, or other activities. The company assured stakeholders that the impact is not significant and that it will be appealing the order on legal grounds. Britannia is exercising its rights under the GST law and intends to take necessary actions, including seeking appropriate legal remedies.

The company also emphasized that this order does not have a quantifiable impact on its day-to-day operations, and it continues to focus on its business strategies. Additionally, there are no significant alterations in the company's financial outlook or ongoing activities due to this order.

Britannia has reassured its investors and stakeholders by confirming that the order is appealable, and the company will explore all legal avenues available to resolve the issue. The company’s legal team is currently reviewing the order and preparing to challenge the demand as per the provisions of the GST law.

This disclosure aligns with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and adheres to the guidelines of the SEBI Master Circular dated November 11, 2024. Britannia has informed the BSE and NSE as part of its regulatory obligations to ensure transparency and timely updates for investors.

Britannia Industries remains committed to resolving this matter efficiently, and its legal team is preparing the necessary steps to appeal the order. The company is confident that the issue will be handled within the legal framework, ensuring minimal disruption to its operations and business goals.

For investors and stakeholders, the company continues to monitor the situation closely and will provide updates as necessary. The issue at hand, though significant in terms of its monetary value, is not expected to disrupt Britannia's long-term financial stability or growth trajectory.

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