1 week Ago By Neethu
Sign In Sign Up Top Stories The GST authorities have started investigating whether Dabur India’s popular digestive candy Hajmola should be taxed as an Ayurvedic medicine (12%) or as a regular candy (18%). According to a report by CNBC-TV18, the Directorate General of GST Intelligence ( DGGI ), Coimbatore zone, is leading the probe. Dabur argues that Hajmola is an Ayurvedic product, made with traditional herbs and ingredients, and not a simple sugar candy.
The company believes it qualifies for a 12% GST rate applicable to Ayurvedic medicines. Dabur also pointed out that in the pre-GST era, the Supreme Court had ruled in its favour, classifying Hajmola as an Ayurvedic medicine and not confectionery. Overwhelmed by GST Cases? This digest simplifies it for you – Click Here This GST issue adds to Dabur’s current tax challenges.
On April 1, the company revealed it had received a tax demand of Rs. 110.33 crore from the Income Tax Department for financial year 2017–18.
The authorities claim Dabur made wrong deductions related to in-house R&D and under Section 14A of the Income Tax Act . Read More: Global Trade in Crisis: A Recap of Trump’s Tariffs and the World’s Response In another legal matter, the Delhi High Court has asked Dabur to submit scientific proof for claims made in its toothpaste advertisement. Dabur had suggested that fluoride in toothpaste could harm health, leading to problems like brittle bones and lower IQ.
This comes after a legal complaint by Colgate-Palmolive, which said Dabur’s ad was misleading and harmful to fluoride-based products. The court has given Dabur two weeks to respond. Overwhelmed by GST Cases? This digest simplifies it for you – Click Here Financially, Dabur has reported a modest performance.
In the third quarter of FY25, the company posted a 2% year-on-year increase in net profit to Rs. 516 crore, with revenues rising by 3% to Rs. 3,355 crore.
The company has issued a cautious outlook for the March quarter, anticipating flat consolidated revenue and a contraction in operating margins by 150–175 basis points. This guidance has led to a decline in investor confidence, with Dabur’s shares falling by 7.5% and reaching a new 52-week low.
Read More: [BREAKING] Table 3.2 in GSTR-3B to be System-Locked Starting April 2025: GSTN Advisory Despite these challenges, Dabur continues to focus on its core brands, including Dabur Chyawanprash, Real juices, Dabur Honey, PudinHara, Lal Tail, Amla Hair Oil, and Red Toothpaste. The company is also expanding its international presence, with markets such as MENA, Egypt, and Bangladesh delivering strong double-digit growth, now contributing nearly one-fourth of Dabur’s total revenue.
Overwhelmed by GST Cases? This digest simplifies it for you – Click Here Looking ahead, Dabur has scheduled its Board of Directors meeting for May 7, 2025, to consider and approve the audited financial results for the quarter and financial year ending March 31, 2025. The company may also declare a final dividend during this meeting. Support our journalism by subscribing to Taxscan premium .
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