Aditya Birla Lifestyle Brands Limited (ABLBL) has received a significant tax demand from the Additional Commissioner of Central Tax Bangalore-East Commissionerate. The order, dated 30 March 2026, imposes a total demand of ₹310,13,33,083, comprising tax, interest, and penalties.
The breakdown of the demand includes a tax amount of ₹59,06,52,705, interest of ₹23,80,86,318, and a penalty of ₹2,27,25,94,060. The demand order was issued following the conclusion of an audit proceeding, which highlighted several alleged irregularities related to the company’s Input Tax Credit (ITC) practices.
The issues cited in the order include the irregular availment of ITC, interest on the reversal of ITC, interest on delayed upload of output liability, ineligible credit note availment, blocked ITC availment, wrongly distributed ISD ITC, and non-payment of GST on ISD invoices for the financial years 2019-20 to 2022-23.
Despite the substantial demand, Aditya Birla Lifestyle Brands has stated that there is no impact on its financials, operations, or other activities. The company believes that the demand is not tenable under the law and plans to file a suitable appeal against the order with the Appellate Authority.
The order is related to the business that was demerged from Aditya Birla Fashion and Retail Limited (ABFRL) effective from 1 May 2025, following a Scheme of Arrangement.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).