LT Foods announced that it received an appellate order dated January 30, 2026, from the Commissioner of CGST (Appeals-II), Delhi. This order sets aside a previous decision that had dropped a ₹32.41 crore GST demand. The confirmed demand now includes the principal amount, applicable interest, and penalties. The company intends to challenge this order before the appropriate GST Appellate Tribunal, anticipating no immediate material impact on its financials.
Regulatory Update on GST Matter
LT Foods Limited has informed exchanges regarding an appellate order received on February 4, 2026, originating from the Commissioner of CGST (Appeals-II), Delhi. This order, dated January 30, 2026, addresses an earlier proceeding concerning a proposed GST liability.
Details of the Appellate Order
The proceedings stem from an initial Order-in-Original, issued on January 27, 2025, by the Additional Commissioner, which had previously dropped a proposed GST demand of ₹32.41 crore. Following this, the tax department filed a departmental appeal.
The Commissioner of CGST (Appeals-II), Delhi, vide the recent Appellate Order (No. C.No. 1316/C/GST/DL-APPEAL-II/2025-26/6801), has allowed the departmental appeal. Consequently, the Order-in-Original was set aside to the extent of dropping the demand. This action results in the confirmation of the GST demand of ₹32.41 crore, along with applicable interest under Section 50 and penalties under Section 74 of the CGST Act, 2017.
Alleged Violation and Next Steps
The core issue pertains to the alleged wrongful availment of GST exemption under Notification No. 02/2017-CT (Rate) dated June 28, 2017. This related to supplies of rice provided in plain packaging, which the authority deemed ineligible for exemption.
The Company states that, based on legal advice, it possesses strong grounds on merits to challenge the order. LT Foods confirms its intention to file an appeal before the appropriate GST Appellate Tribunal within the stipulated timelines.
Financial Impact Assessment
At this juncture, the management does not foresee any material impact on the Company’s financial position or operational performance arising directly from this confirmed order.
Source: BSE
