Aditya Birla Lifestyle Brands Receives Additional GST Orders Worth ₹6.91 Crore
Aditya Birla Lifestyle Brands has received new Central Tax orders worth ₹6.91 crore for GST violations related to Input Tax Credit reversals on inventory write-offs and fixed assets. These orders, issued by H.S.Govardhana Rao Assistant Commissioner and dated March 16, 2026, add to the company's existing GST challenges of ₹98.36 lakh disclosed earlier. The company maintains these demands are not legally tenable and plans to file appeals while confirming no impact on operations.
*this image is generated using AI for illustrative purposes only.
Aditya Birla Lifestyle Brands Limited has received additional Central Tax orders imposing demands totaling ₹6.91 crore for alleged GST violations, following earlier orders worth ₹98.36 lakh disclosed in March 2026. The latest orders were issued by H.S.Govardhana Rao Assistant Commissioner, East Division-5 Bangalore-East Commissionerate, dated March 16, 2026, and received by the company on March 17, 2026.
The company disclosed this development to stock exchanges on March 19, 2026, pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Similar to the previous orders, these are issued in the name of Aditya Birla Fashion and Retail Limited (ABFRL) but relate to the business that was demerged from ABFRL to the current company pursuant to a Scheme of Arrangement effective from May 1, 2025.
Latest Tax Demand Orders
The Central Tax authority has issued two new orders under Form DRC-07, addressing different GST compliance violations:
| Order Details: | OIO No. 325 | OIO No. 324 |
|---|---|---|
| Tax Demand: | ₹1,57,30,210 | ₹1,88,23,086 |
| Penalty: | ₹1,57,30,210 | ₹1,88,23,086 |
| Interest: | Not quantified | Not quantified |
| Total Demand: | ₹3,14,60,420 | ₹3,76,46,172 |
Nature of Current Violations
The two new orders address distinct GST compliance issues identified during audit and show cause notice proceedings:
- Order 325: Relates to reversal of Input Tax Credit (ITC) on inventory written off/shrinkage for FY 2019-20 to 2021-2022
- Order 324: Concerns reversal of ITC on Fixed Assets write-off for FY 2019-20 to 2022-2023
Previous GST Orders Context
These latest orders add to the company's existing GST challenges. In March 2026, the company had received three separate orders totaling ₹98.36 lakh for various GST violations including:
- Reversal of Input Tax Credit on vendor defaulter
- Claiming concessional rate and non-payment of tax on vehicle sale
- Export without payment of Integrated GST (IGST)
Company's Response and Impact
Aditya Birla Lifestyle Brands has stated that there is no impact on the company's financials, operations, or other activities due to these orders. The company believes that the demands are not tenable as per law and intends to file suitable appeals against the orders before the Appellate Authority.
The company acknowledged that the delay in disclosure was unintentional and was reported swiftly once it was brought to the notice of the appropriate company executives. This transparency ensures compliance with regulatory requirements and keeps stakeholders informed about material developments.
Historical Stock Returns for Aditya Birla Lifestyle Brands
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.41% | -3.72% | -12.07% | -32.08% | -43.42% | -43.42% |
How might these escalating GST demands affect Aditya Birla Lifestyle Brands' cash flow and working capital management in the coming quarters?
What impact could prolonged GST litigation have on the company's expansion plans and capital allocation strategy?
Will these tax disputes influence investor sentiment and the company's ability to raise funds for future growth initiatives?
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