Aditya Birla Lifestyle Brands Limited (ABLBL) has disclosed receiving an order from the Additional Commissioner of Central Tax, Bangalore-East, imposing a total demand of ₹3,10,13,33,083, dated March 30, 2026. This order stems from an audit concerning the FY 2019-20 to FY 2022-23 period, primarily relating to irregular Input Tax Credit (ITC) availment. ABLBL currently believes the demand is untenable and plans to file an appeal against the order.
Disclosure of Tax Authority Order
Aditya Birla Lifestyle Brands Limited (ABLBL) has formally notified stock exchanges regarding an order received from the Additional Commissioner of Central Tax, Bangalore-East Commissionerate. The order, dated March 30, 2026, was issued in the name of Aditya Birla Fashion and Retail Limited (ABFRL), but pertains to the business that was demerged into ABLBL effective May 1, 2025.
Details of the Imposed Demand
The action taken involves an Order in Form DRC-07, which imposes a significant financial demand totaling ₹3,10,13,33,083. The breakdown of this demand is substantial:
- Tax Component: ₹59,06,52,705
- Interest Component: ₹23,80,86,318
- Penalty Component: ₹2,27,25,94,060
The company received the communication and the order itself on the same day, March 30, 2026.
Alleged Contraventions and Company Stance
The demand order arose following the conclusion of an Audit Proceeding. The alleged violations primarily revolve around disputes related to the irregular availment of Input Tax Credit (ITC). Specific issues cited include interest on ITC reversal, delayed upload of output liability, ineligible credit note availment, and non-payment of GST on ISD Invoices for the period spanning FY 2019-20 to FY 22-23.
ABLBL has stated clearly that there is no expected impact on the company’s financials or operations, as the management firmly believes the said demand is not tenable as per the law. Consequently, the Company has announced its intention to file a suitable appeal against the order before “The Appellate Authority.”
Source: BSE
