Aditya Birla Lifestyle Brands Faces GST Demand of ₹6.91 Crore
Bengaluru, 19 March 2026: Aditya Birla Lifestyle Brands Limited (ABLBL) has received two orders from the H.S. Govardhana Rao, Assistant Commissioner, East Division-5, Bangalore-East Commissionerate, imposing a Goods and Services Tax (GST) demand totaling ₹6.91 crore.
The orders relate to the business operations demerged from Aditya Birla Fashion and Retail Limited (ABFRL) under a Scheme of Arrangement effective from 1 May 2025.
Details of the GST Orders
| Order Number | Tax (₹) | Penalty (₹) | Total Demand (₹) | Nature of Dispute |
|---|---|---|---|---|
| OIO No- 325/GST/AC/ED5/2026 | 1,57,30,210 | 1,57,30,210 | 3,14,60,420 | Reversal of Input Tax Credit (ITC) on inventory written off/shrinkage (FY 2019-20 to 2021-22) |
| OIO No- 324/GST/AC/ED5/2026 | 1,88,23,086 | 1,88,23,086 | 3,76,46,172 | Reversal of ITC on fixed assets written off (FY 2019-20 to 2022-23) |
Total GST Demand: ₹6,91,06,592
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Date of Order: 16 March 2026
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Date of Receipt: 17 March 2026
Company Statement
ABLBL clarified that the GST demands will not impact the company’s financials, operations, or other activities. The company believes the demand is not tenable under the law and intends to file an appeal with the Appellate Authority.
The disclosure was made under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and any delay in reporting was unintentional.
Background
Aditya Birla Lifestyle Brands Limited operates in the apparel and lifestyle sector in India, following the demerger from ABFRL. The GST demand is linked to Input Tax Credit reversals on past inventory and fixed asset write-offs, covering fiscal years 2019–2023.
Outlook
The company maintains that it will contest the GST orders through proper legal channels and expects no operational disruption from the ongoing proceedings.