Is Dabur Hajmola an ayurvedic medication or sweet? GST physique to assessment classification
Dabur India’s widespread Hajmola sweet is underneath probe by the Directorate Normal of GST Intelligence (DGGI).
In response to a CNBC-TV18 report, the DGGI’s Coimbatore zone is at the moment probing whether or not Hajmola sweet ought to be handled as an ayurvedic medication, attracting 12 per cent GST, or as a sweet taxed at 18 per cent.
Dabur claimed that Hajmola sweet is an ayurvedic medication and never a “common sugar-boiled sweet”, the report mentioned.
HT can not independently confirm this data.
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Within the pre-GST regime, Dabur had confronted an identical classification problem the place the Supreme Court docket dominated in its favour, stating that Hajmola sweet is an ayurvedic medication and never a confectionery merchandise.
Dabur going through a tax demand: Report
On April 1, Dabur disclosed an revenue tax reassessment order demanding Rs110.33 crore for the monetary yr 2017-18.
The revenue tax division alleged incorrect claims for tax deductions associated to in-house Analysis and Growth (R&D) and underneath Part 14A of the Revenue-tax Act, 1961, the CNBC-TV18 report added.
Earlier this month, Dabur mentioned it anticipated its income to say no in March quarter impacted by slowdown in city markets and contraction of 150-175 foundation factors in working revenue margin as a consequence of inflation.
In response to a PTI report, Dabur added it anticipated its consolidated income to be “flattish” throughout This fall FY25.
Dabur owns energy manufacturers as Dabur Chyawanprash, Dabur Honey, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Pink Paste, Actual and Vatika.
Its key worldwide markets, together with the MENA area, Egypt, and Bangladesh, are prone to submit sturdy efficiency, resulting in sturdy double-digit development. Dabur will get practically one-fourth income from worldwide enterprise.
“Nevertheless, as a consequence of delayed and truncated winters and slowdown in city markets, India FMCG enterprise is prone to decline in mid-single digits. Consequently, Dabur’s consolidated income is predicted to be flattish throughout This fall FY25,” the corporate mentioned in its newest quarter updates.
(With PTI inputs)
