Diga Fu Popcorn tax! GST now targets Dabur’s Hajmola in the tax classification test- medicine or dessert?

After targeting the popcorn industry in a similar classification row, GST authorities turned their attention to Hagola. According to the CNBC-TV18 report, Coimbatore DGGI launched an investigation on whether a 12 % famous Hagola candy tax should be imposed as an Ayurveda or 18 % as lamps.

DABUR confirms that Hajmola is rooted in Ayurveda and is not a “regular sugar candy”, and is eligible to reduce the tax rate. The company had earlier won a similar case during the pre -GST era, when the Supreme Court ruled that Hagola Candy had decreased under the category of Ayurveda medicine, not sweets.

This last check adds to the growing DABUR list of tax problems. On April 1, the company revealed an order to re-evaluate income tax that requires 110.33 rupees for the fiscal year 2017-18. The authorities have claimed illegal claims on research and development discounts and not allowing Article 14A of the Income Tax Law.

Organizational challenges come at a time when Dabur warns of slow growth in its latest financial update. For the quarter of March, the company expects the unified revenues to remain “mocking”, noting a decline in urban demand and inflation pressure. Operating margins are expected to shrink by 150-175 basis points.

The company said that Dabur’s India FMCG is likely to decrease in medium numbers. However, international markets such as Mina, Egypt and Bangladesh are expected to achieve strong growth in two numbers. Almost a quarter of Dabur’s revenues now come from global operations.

Among the brands of Davor, Dabor Xinbash, real juices, dabur honey, podinhara, Lal tail, hair oil, red toothpaste.