Bombay Dyeing has received a GST demand order for ₹6.14 crore related to infrastructure charges from FY 2018-19. The company plans to appeal the order at the GST Appellate Tribunal.

Bombay Dyeing Faces ₹6.14 Crore GST Demand; Company to Appeal

₹6.14 crore GST demand order received by Bombay Dyeing.
Company plans to challenge the order at the GST Appellate Tribunal.

What just happened

The Bombay Dyeing and Manufacturing Company Limited has been issued a Goods and Services Tax (GST) demand order amounting to ₹6.14 crore. This demand, received on June 18, 2026, pertains to infrastructure charges related to the sale of flats during the financial year 2018-19. The order was issued by the Deputy Commissioner of State Tax, Appeal, Mumbai.

Why this matters

This is a regulatory compliance issue that could potentially impact the company's financials if the appeal is unsuccessful. However, the company has stated that the order does not affect its ongoing operations. The management's decision to appeal indicates they contest the liability.

The backstory

This GST demand is linked to a specific past financial period, FY 2018-19, concerning infrastructure charges. The company is facing this from the Deputy Commissioner of State Tax, Appeal, Mumbai.

What changes now

Bombay Dyeing intends to file an appeal against this demand order with the GST Appellate Tribunal (GSTAT) within the stipulated timeframe. This means the matter is not closed and will move to a higher judicial forum for resolution.

Risks to watch

The primary risk is the outcome of the appeal process. If the appeal is not successful, the company will have to pay the ₹6.14 crore, which includes principal tax, interest, and penalty.

Peer comparison

While specific GST disputes for peers in real estate or textiles are not detailed here, such demands are not uncommon for companies with significant property development or sales activities.

Context metrics (time-bound)

The total demand of ₹6.14 crore breaks down as follows: Principal Tax ₹1.92 crore, Interest ₹2.31 crore, and Penalty ₹1.92 crore.

What to track next

Investors should closely monitor the company's filings for updates on the appeal process with the GST Appellate Tribunal and the final verdict.