Aditya Birla Lifestyle Brands Limited has received a tax demand order totalling ₹3,76,46,172 from the H.S. Govardhana Rao, Assistant Commissioner of the East Division-5 Bangalore-East Commissionerate. The order, dated March 16, 2026, was issued in connection with the company’s operations that were demerged from Aditya Birla Fashion and Retail Limited (ABFRL) effective from May 1, 2025.
The tax demand consists of two separate orders. The first order, numbered 325/GST/AC/ED5/2026, imposes a demand of ₹3,14,60,420, which includes a tax amount of ₹1,57,30,210 and an equivalent penalty, while interest has not been quantified. The second order, numbered 324/GST/AC/ED5/2026, imposes a demand of ₹3,76,46,172, with a tax amount of ₹1,88,23,086 and an equivalent penalty, with interest also not quantified.
The demands were raised following the conclusion of audit proceedings and show cause notice proceedings. The disputes relate to the reversal of Input Tax Credit (ITC) on inventory written off and shrinkage for the financial years 2019-20 to 2021-22, and on fixed assets written off for the financial years 2019-20 to 2022-23.
Aditya Birla Lifestyle Brands has stated that there is no impact on its financials, operations, or other activities due to this demand. The company believes that the demand is not tenable under the law and intends to file a suitable appeal against the order before the Appellate Authority.
The company acknowledged a delay in disclosing this information, attributing it to an unintentional oversight that was swiftly reported once noticed by the appropriate company executives.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).