LT Foods Receives Rs. 32.41 Crore GST Demand for wrongful availment of GST exemption
LT Foods Limited, a global Fast-Moving Consumer Goods (FMCG) company, recently issued a disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, addressed to BSE Ltd and NSE Ltd, regarding receipt of a demand order dated February 4, 2026.
The company added that the Additional Commissioner of CGST, Delhi South Commissionerate, had earlier passed an Order-in-Original on January 27, 2025. In that order, the GST demand of Rs. 32.41 crore mentioned in the Show Cause Notice was dropped, meaning the department’s demand was cancelled.
Later, the Commissionerate filed an appeal against this order before the Commissioner of CGST (Appeals-II), Delhi. The department challenged the decision to drop the GST demand.
The Commissioner (Appeals-II), Delhi, passed an Appellate Order dated January 30, 2026. In this order, the appeal filed by the department was allowed.
As a result, the earlier Order-in-Original has been set aside to the extent that it had dropped the demand. This means the GST demand of Rs. 32.41 crore has now been confirmed.
Accordingly, the amount of Rs 32.41 crore has been confirmed under Section 74 of the CGST Act, 2017, along with applicable interest under Section 50 and penalty as prescribed under Section 74 of the CGST Act, 2017.
The company said it has received a tax demand notice from the GST department. The notice claims that the company wrongly claimed GST exemption on rice it sold in plain packaging.
According to the department, under Notification No. 02/2017-CT (Rate) dated June 28, 2017, those rice supplies were not actually eligible for GST exemption under the CGST Act, 2017.
The company believes that the order is incorrect and that it has valid and strong reasons to challenge it. Therefore, it plans to file an appeal before the appropriate GST Appellate Tribunal within the time limit prescribed under the law.
