Aditya Birla Real Estate Limited has received an order from the Additional Commissioner of Central Goods & Service Tax regarding the disallowance of input tax credits. The demand covers the period from April 2019 to March 2024, totaling approximately ₹95 lakhs in tax and ₹73.65 lakhs in penalties. The company maintains that this order will not have a material impact on its operations and plans to formally contest the decision through an appeal.
Details of the Tax Order
The company was notified of an order confirming a demand for unpaid tax and associated penalties by the tax authorities in Dehradun, Uttarakhand. The demand, which includes a tax component of ₹95 lakhs and a penalty of ₹73.65 lakhs, stems from the disallowance of input tax credits previously claimed by the firm. The underlying dispute relates to goods and services utilized for the company’s residential colony, as well as exempt supplies and rental income from immovable property over a five-year period ending in March 2024.
Company Response and Outlook
Aditya Birla Real Estate Limited intends to challenge the tax authority’s findings. The company is currently preparing to file an appeal with the Commissioner (Appeals) to contest the demand. Despite the magnitude of the financial claim, management has stated that they do not anticipate this matter to have any material adverse impact on the company’s ongoing business activities, financial health, or operational performance.
Timeline of Events
The original tax order was dated March 29, 2026. The company received formal notification via email on March 31, 2026, followed by the physical delivery of the documentation on April 4, 2026. The delay in the formal announcement was attributed to the time required for a comprehensive internal review and a thorough assessment of the legal and factual veracity of the order.
Source: BSE
