Aditya Birla Fashion and Retail Limited Ordered To Pay Penalty Over Tax Dispute in GST Scrutiny
Aditya Birla Fashion and Retail Limited has been issued a penalty order following scrutiny returns conducted by tax authorities concerning its operations. The Assistant Commissioner of Sales Tax, Nagole GST Division, Hyderabad, issued the order on July 24, 2026, awarding a penalty of Rs. 51,52,528/- to the company.The action was taken under Section 74 of the Central Goods and Services Tax Act, 2017. The dispute arose during the scrutiny returns for the Financial Year (FY) 2020-21.
According to the details of the order, the demand raised against Aditya Birla Fashion and Retail Limited relates to Input Service Distributor (ISD) ITC availed. The underlying issue involves tax that has already been reversed by the company, alongside a parallel proceeding initiated due to a claim for input tax credit based on vendor default in filing returns.
Regarding the financial and operational consequences, the company stated there is no impact on its financials or operations. Aditya Birla Fashion and Retail Limited expressed its belief that the demand is not tenable according to the law and intends to file an appeal against the order before The Appellate Authority.
Key details of the tax action are as follows:
| Particulars | Details |
|---|---|
| Authority | Assistant Commissioner of Sales Tax, Nagole GST Division, Hyderabad |
| Nature of Action | Order under Section 74 of Central Goods and Services Tax Act, 2017 |
| Penalty Awarded | Rs. 51,52,528/- |
| Date of Order | July 24, 2026 |
| Violation Basis | Dispute over ISD ITC availed during scrutiny for FY 2020-21 relating to vendor default and non-filing of returns. |
ABFRL Stock Price Movement
Shares of Aditya Birla Fashion and Retail Limited climbed on Friday, settling at ₹56.25 after edging up by 0.14% or a gain of ₹0.08. The stock navigated a daily range spanning from a low of ₹55.10 to a high of ₹56.75, with over 2.29 million shares traded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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