NEW DELHI: The humble Hajmola is now facing GST scrutiny. Authorities approached Dabur , the company that manufactures it, raising questions over whether the product should be classified as a candy, which attracts 18% tax, or as an ayurvedic item, which faces a 12% levy.
While the company could not be reached for comment, Dabur is learnt to have responded to the query from the Directorate General of GST Intelligence, arguing that it should be classified as an ayurvedic preparation and that it should not be treated as sugar-boiled candy.
Sources said the issue had been dealt with in the past as well and there were court rulings that allowed Hajmola, a household name, to be treated as an ayurvedic product.
The queries, which have the makings of a possible tax dispute, once again highlight the challenges faced by companies due to four-rate Goods and Services Tax structure.
While the company could not be reached for comment, Dabur is learnt to have responded to the query from the Directorate General of GST Intelligence, arguing that it should be classified as an ayurvedic preparation and that it should not be treated as sugar-boiled candy.
Sources said the issue had been dealt with in the past as well and there were court rulings that allowed Hajmola, a household name, to be treated as an ayurvedic product.
The queries, which have the makings of a possible tax dispute, once again highlight the challenges faced by companies due to four-rate Goods and Services Tax structure.
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