Dabur India’s popular Hajmola Candy is currently investigating the GST Intelligence Station (DGGI) station.
According to CNBC-TV18 ReportDGGI’s Coimbatore Zone is currently investigating whether Hajimora candies should be treated as Ayurvedic medicine, attracting 12% GST, or as candies taxed at 18%.
Dabur claimed that Hajmola Candy is an Ayurvedic medicine and not “normal candy boiled in sugar,” the report said.
HT cannot independently validate this information.
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In pre-GST administrations, Dabour faced similar classification challenges. There, the Supreme Court ruled in its favor, saying that Haimora candy is Ayurvedic medicine, not a confectionery item.
Dabour faces tax demand: Report
On April 1, Dabur disclosed an income tax revaluation order requiring Rs110.33 crore for the 2017-18 fiscal year.
The Income Tax Bureau allegedly erroneous claims for tax credits related to Internal Research and Development (R&D) and Section 14A of the Income Tax Act 1961, the CNBC-TV18 report added.
Earlier this month, Dabur said revenues are expected to decline in the March quarter, with a slowdown in urban markets and a 150-175 basis points in operating profit margin due to inflation.
According to a PTI report, Dabur added that it expects the combined revenue to be “flattish” during the fourth quarter.
Dabur owns power brands such as Dabur Chyawanprash, Dabur Honey, Dabur Pudinhara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real and Vatika.
Its major international markets, including the Mena region, Egypt and Bangladesh, are likely to perform well, leading to robust double-digit growth. Dabur earns almost a quarter of revenue from international business.
“However, due to the delay in winter and slowdown in truncated urban markets, India’s FMCG business is likely to have a one-sided mid-digit decline. As a result, Dabul’s integrated revenues are expected to flatten during the fourth quarter,” the company said in its latest quarter update.
(Includes PTI input)
