Aditya Birla Fashion & Retail Limited has disclosed receiving a demand order from tax authorities regarding Goods and Services Tax (GST) compliance. The company informed stock exchanges about the regulatory action through a filing under SEBI Listing Regulations.

CGST Demand Details

The Assistant Commissioner, CGST Central Excise, Division-V, Indore, issued the demand order in Form DRC-07. The financial implications of the order are as follows:

The order does not specify any interest amount component in the total demand calculation.

Nature of Dispute

The demand order stems from proceedings related to input tax credit claims. The dispute centers on the difference between input tax credit claimed in GSTR3B returns and the credit available in GSTR2A returns. This discrepancy led to the conclusion of Show Cause Notice (SCN) proceedings, resulting in the current demand order.

Company's Response and Impact Assessment

Aditya Birla Fashion has stated that the demand order will have no impact on the company's financial, operational, or other business activities. The company maintains that the demand is not legally tenable under applicable tax laws.

The fashion retailer has announced its intention to challenge the order through proper legal channels. The company plans to file an appeal against the demand order before the Appellate Authority, indicating confidence in its tax compliance position.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI Listing Regulations. Company Secretary and Compliance Officer Rajeev Agrawal signed the regulatory filing, ensuring transparency with stakeholders about the tax matter.

Aditya Birla Fashion & Retail Limited has received a significant tax demand order from the Deputy Commissioner of State Tax, Mumbai, totaling ₹13.77 crores. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Regulations.

Tax Demand Breakdown

The order, issued in Form DRC-07, comprises multiple components that make up the total demand:

Nature of Dispute

The demand order stems from audit proceedings and relates to disputes over input tax credit claims. The specific violations alleged by the tax authority include:

• Mismatch of outward liability with GSTR-1 vs GSTR-9
• Mismatch in Import ITC with GSTR-2A

These discrepancies were identified during the conclusion of audit proceedings conducted by the Mumbai tax office.

Company's Response and Impact Assessment

Aditya Birla Fashion & Retail has maintained a firm stance regarding the tax demand. The company believes that the demand is not tenable as per existing law and has announced its intention to file a suitable appeal before the Appellate Authority.

Regarding operational impact, the company has stated that there is no impact on its financial operations or other activities. This suggests that Aditya Birla Fashion & Retail views the demand as a procedural matter that can be resolved through the appellate process.

Regulatory Compliance

The company made the disclosure in compliance with SEBI Listing Regulations and relevant SEBI circulars. The regulatory filing was signed by the Company Secretary and Compliance Officer, ensuring proper authorization and compliance with disclosure requirements.