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Is Dabur Hajmola an ayurvedic medicine or candy? GST body to review classification
Dabur claimed that Hajmola candy is an ayurvedic medicine and not a “regular sugar-boiled candy”
Dabur India's popular Hajmola candy is under probe by the Directorate General of GST Intelligence (DGGI).
According to a CNBC-TV18 report, the DGGI's Coimbatore zone is currently probing whether Hajmola candy should be treated as an ayurvedic medicine, attracting 12 per cent GST, or as a candy taxed at 18 per cent.
Dabur claimed that Hajmola candy is an ayurvedic medicine and not a “regular sugar-boiled candy”, the report said.
HT cannot independently verify this information.
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In the pre-GST regime, Dabur had faced a similar classification challenge where the Supreme Court ruled in its favour, stating that Hajmola candy is an ayurvedic medicine and not a confectionery item.
Dabur facing a tax demand: Report
On April 1, Dabur disclosed an income tax reassessment order demanding Rs110.33 crore for the financial year 2017-18.
The income tax department alleged incorrect claims for tax deductions related to in-house Research and Development (R&D) and under Section 14A of the Income-tax Act, 1961, the CNBC-TV18 report added.
Earlier this month, Dabur said it expected its revenue to decline in March quarter impacted by slowdown in urban markets and contraction of 150-175 basis points in operating profit margin due to inflation.
According to a PTI report, Dabur added it expected its consolidated revenue to be "flattish" during Q4 FY25.
Dabur owns power brands as Dabur Chyawanprash, Dabur Honey, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real and Vatika.
Its key international markets, including the MENA region, Egypt, and Bangladesh, are likely to post strong performance, leading to robust double-digit growth. Dabur gets nearly one-fourth revenue from international business.
"However, due to delayed and truncated winters and slowdown in urban markets, India FMCG business is likely to decline in mid-single digits. As a result, Dabur's consolidated revenue is expected to be flattish during Q4 FY25," the company said in its latest quarter updates.
(With PTI inputs)
