Dodla Dairy has disclosed receipt of two orders from the Deputy Commissioner (ST), Andhra Pradesh, demanding ₹5,73,04,242. These orders, dated November 10, 2026, relate to FY 2022-23 and FY 2023-24 and allege short reversal of input tax credit (ITC) on exempt supplies. The company disputes these findings and intends to file an appeal before the Commissioner Appeals, stating that the orders do not impact its current operations.
Tax Orders Received by Dodla Dairy
Dodla Dairy Limited has announced the receipt of two official orders from the Deputy Commissioner (ST), State Office, Commercial Taxes Department, Government of Andhra Pradesh. These orders, both bearing the date November 10, 2026, were issued in Form GST DRC-07 and pertain to the financial years FY 2022-23 and FY 2023-24.
Nature of the Allegations and Demand
The core of the orders alleges that Dodla Dairy had short reversed the proportionate input tax credit (ITC) attributable to exempt supplies on common inputs and input services. Consequently, a demand for INR 5,73,04,242 has been raised, encompassing both interest and penalty. The company contends that these demands were raised without adequately considering its submissions.
Company’s Response and Future Actions
Aggrieved by the orders, Dodla Dairy Limited has stated its intention to file an appeal against these demands before the Commissioner Appeals. The company further clarified that the proceedings are under Section 73 of the CGST / APGST Act, 2017, which means they do not involve allegations of fraud, wilful misstatement, or suppression of facts.
Impact on Operations
Despite the significant monetary demand, Dodla Dairy has confirmed that these orders do not have any immediate impact on the financial or operational activities of the listed entity, as they are contesting the demand through the appellate process.
Source: BSE
