Dabur's popular digestive Hajmola is once again under investigation by the Directorate General of GST Intelligence (DGGI). The core issue is whether Hajmola should be classified as a candy, attracting an 18% GST, or as an Ayurvedic product, subject to a 12% GST. This classification has significant tax implications for Dabur and could set a precedent for other traditional wellness products.
Fresh GST Scrutiny on Dabur's Digestive Pill
Dabur's iconic digestive product Hajmola is under the tax spotlight again, as the Directorate General of GST Intelligence (DGGI) questions its classification - whether it should be taxed like a candy or as an Ayurvedic product.
Tax Implication
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FAQ :
The Directorate General of GST Intelligence (DGGI) is questioning whether Hajmola should be classified as a candy or an Ayurvedic product for GST purposes.
If classified as candy, Hajmola would attract an 18% GST. If classified as an Ayurvedic formulation, it would attract a 12% GST.
Yes, Dabur has submitted its response to the show-cause notice issued by the DGGI.
No, this is not the first controversy. In 2002, the Supreme Court ruled Hajmola to be an Ayurvedic medicine under the previous tax regime.
This case could raise significant questions about how traditional health and wellness products are classified and taxed under the current GST system, potentially impacting many similar products.