HFHindustan Foods519126Tax or GST

GST demand of Rs. 17,14,896 for FY 2022-23 received; company says no material impact

Hindustan Foods has received a demand order under Section 73 of the CGST/SGST Act, 2017 for FY 2022-23 from the Tamil Nadu Commercial Taxes Department.

By ScoutQuest · Fri 23 Oct 2026, 5:57 PM IST · 2 min read

Total GST Demand

Rs. 17,14,896/-

Tax and Penalty Component

~Rs. 14.44 lakh

Interest Component

Rs. 2,71,752/-

What the company told the exchanges

Hindustan Foods has disclosed that it received a demand order dated October 22, 2026 from the Government of Tamil Nadu Commercial Taxes Department, in proceedings of the Deputy Commissioner (St). The order relates to FY 2022-23.

• The order was passed under Section 73 of the CGST/SGST Act, 2017.
• It covers ineligible Input Tax Credit (ITC) under section 17(5) and certain ITC claimed by the company.
• The company is contesting the order.

How much is involved

The disclosure gives a clear break-up of the amount, which helps judge the size of the matter:

• Total demand: Rs. 17,14,896/
• Tax and penalty: ~Rs. 14.44 lakh/
• Interest: Rs. 2,71,752/

Simple explanation for a new reader

Input Tax Credit is the credit a business takes for tax already paid on its purchases, which it can set off against the tax it owes on sales. A tax authority can question a claim if it believes the credit was not allowed under the rules. Here, the department has raised a demand covering disallowed credit and the tax and penalty that follow, plus interest.

What the company says about the impact

The update states that there is no material impact on the financials, operations or other activities of the company. It also states that the company is in the process of contesting the order.

What to keep in mind

• This is one order for one financial year from one state's tax authority; the amounts involved are stated in lakhs, not crores.
• The company's stated position is that the impact is not material and that it will contest the demand, so the amount may change depending on the outcome of that process.
• The disclosure gives the amount involved and the company's view of its impact, which is what a reader needs to weigh the relevance of the update.

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