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ABFRL faces Rs 13.77 crore GST demand after Mumbai tax audit, plans to appeal
The Aditya Birla Group firm says the order has no impact on its financials or operations and calls the tax claim legally untenable.
According to ABFRL, the dispute has arisen due to an alleged mismatch in outward tax liability reported under GSTR-1 and GSTR-9, as well as a mismatch in import-related input tax credit reflected in GSTR-2A.
Aditya Birla Fashion and Retail Ltd (ABFRL) on Thursday said it has received a tax demand order of ₹13.77 crore from the office of the Deputy Commissioner of State Tax, Mumbai, following the completion of audit proceedings.
The order, received by the company on December 16, 2025, comprises ₹7.15 crore in tax, ₹5.89 crore in interest and a penalty of ₹71.18 lakh.
The demand relates to issues around the company’s input tax credit (ITC) claims. According to ABFRL, the dispute has arisen due to an alleged mismatch in outward tax liability reported under GSTR-1 and GSTR-9, as well as a mismatch in import-related input tax credit reflected in GSTR-2A.
In a regulatory filing, the company said the tax order does not have any impact on its financial position, operations or other business activities. ABFRL added that it believes the demand is not sustainable under prevailing tax laws and has decided to challenge the order before the appropriate appellate authority.
The company also clarified that the delay in disclosing the tax order was unintentional, stating that the information was promptly reported once it was brought to the attention of the relevant company executives.
Shares of Aditya Birla Fashion and Retail Ltd closed at ₹75.55 on the BSE on December 18, down ₹0.83, or 1.09%, from the previous close.
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