The GST authorities examine Dabur Hajmola to determine if it qualifies as an ayurvedic medicine with 12% tax or as a candy with 18% GST tax. The Coimbatore office of the Directorate General of GST Intelligence (DGGI) started this investigation which creates new doubts about proper tax classification for this well-known digestive product.
According to Dabur Hajmola exists as an ayurvedic medicine rather than only being a sugar-based confectionery product. Dabur has already encountered multiple instances where its Hajmola product faced similar tax-related issues. The Supreme Court previously supported Dabur by declaring Hajmola as an ayurvedic medicine during GST’s previous period.
The company faces additional difficulties after receiving an income tax reassessment order that demands ₹110.33 crore for FY 2017-18. The tax dispute focuses on two main points: the company’s internal research expenses and its Section 14A tax deduction claims.
The financial outlook for Dabur shows no growth in Q4 FY25 because the urban market has slowed down and profit margins have decreased because of inflation. The company identifies Egypt along with MENA and Bangladesh as key international markets where it expects double-digit growth rates despite facing domestic challenges.
The company depends on its main brands Dabur Chyawanprash Vatika and Real to generate momentum in the market.
