Devyani International has received a demand order from the Assistant Commissioner of Central Tax, Karnataka, related to alleged short reversal of Input Tax Credit (ITC) on exempt supplies and incorrect ITC availment on inward supply. The total demand is Rs. 5.42 Mn, including a tax of Rs. 1.51 Mn and a penalty of Rs. 3.91 Mn. The company is evaluating the order and plans to take necessary steps, including filing an appeal.
Demand Order Details
Devyani International has received a demand order from the Assistant Commissioner of Central Tax, Karnataka. The order, dated December 31, 2025, pertains to alleged short reversal of Input Tax Credit (ITC) on exempt supplies and incorrect availment of ITC on inward supply for the period from fiscal year 2018-19 to 2022-23.
Financial Impact and Response
The total demand from the tax authority amounts to Rs. 5.42 Mn, which includes a tax component of Rs. 1.51 Mn and a penalty of Rs. 3.91 Mn. Devyani International is currently evaluating the demand order. The company plans to take all necessary actions to address the matter, including the possibility of filing an appeal with the appropriate appellate authority. The company states that there is no material impact on financial, operation or other activities on account of the above order.
Source: BSE
