Godfrey Phillips India has reported a fire incident at a third-party tobacco manufacturing facility in Andhra Pradesh, prompting the company to file an insurance claim to cover the resulting damages.

Fire Incident Details

The fire occurred at a third-party tobacco plant that manufactures products for Godfrey Phillips India. The incident has resulted in damage to the facility, affecting the company's manufacturing operations through its external partner network.

Insurance Claim Filed

Following the fire damage, the company has taken immediate action to recover losses through its insurance coverage. The details of the insurance claim are outlined below:

Impact Assessment

The fire at the third-party manufacturing facility highlights Godfrey Phillips India's reliance on external manufacturing partners for its tobacco product portfolio. The insurance claim amount of ₹344.49 crores reflects the extent of the damage sustained at the facility.

The company's prompt filing of the insurance claim on December 23 demonstrates proactive measures to mitigate financial losses from the incident. The recovery of funds through insurance will be important for addressing the immediate impact of the facility damage and maintaining manufacturing operations continuity.

Godfrey Phillips India Limited , a prominent tobacco company, has received a Goods and Services Tax (GST) demand order imposing a penalty of Rs. 43,60,652 each on the company and a former independent director. The order, issued under the Central Goods and Services Tax Act, 2017, relates to alleged irregular availment and utilization of Input Tax Credit (ITC) under GST laws.

Key Details of the GST Demand Order

Company's Response and Impact

Godfrey Phillips India Limited has stated that the order has no material impact on its financials, operations, or other activities. The company is currently evaluating all options, including filing an appeal against the order.

In compliance with regulatory requirements, the company promptly disclosed this information to the stock exchanges on November 11, 2025, adhering to the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Implications and Next Steps

While the GST demand order raises questions about the company's tax practices, Godfrey Phillips India Limited maintains that it does not significantly affect its financial position or operations. The company's decision to consider an appeal suggests it may contest the allegations of irregular ITC availment and utilization.

Investors and stakeholders will likely monitor the situation closely as the company decides on its course of action. The outcome of any potential appeal could have implications for the company's tax liabilities and regulatory compliance standing.

As the matter unfolds, it underscores the importance of robust tax compliance mechanisms for corporations operating in India's complex GST regime. The case also highlights the potential personal liability that company directors may face in matters of tax compliance.