Archive · 25 Oct 2025
Allahabad High Court Stays ₹110 Crore GST Demand on Dabur's Hajmola
Imagine a company called Dabur that makes a product called Hajmola, which is like a digestive candy.
The government wants to charge them extra taxes, but Dabur disagrees, saying it should be taxed like medicine, which has lower taxes.
The Allahabad High Court has paused the government's request for the taxes while it figures out if Hajmola should be taxed like candy or medicine.
This isn't the first time they've fought about this.
The Supreme Court previously agreed with Dabur in 2022.
The court is checking if the government is right to charge more taxes because of changes from the World Customs Organization.
The court will consider the matter further in four weeks, focusing on the legal aspects, and if the government can seek those extra taxes.
The Allahabad High Court stayed a ₹110 crore GST demand on Dabur's Hajmola.
The dispute centers on whether Hajmola is candy (18% GST) or an Ayurvedic preparation (12% GST).
The issue has been previously decided in Dabur's favor, including a 2022 Supreme Court ruling.
The court is considering the case considering judicial discipline, and limitation.
The matter will be listed for further consideration four weeks later.
- Who
- Allahabad High Court and Dabur India
- What
- Stayed a GST demand on Dabur's Hajmola
- When
- October 24, 2025 (Publication)
- Where
- Allahabad High Court
- Why
- To address the dispute over the GST rate applicable to Hajmola.
- Company Involved
- Dabur India
- Product in Question
- Hajmola
- GST Demand Amount
- ₹110 crore
- Court
- Allahabad High Court
- GST Rate for Candy
- 18%
- GST Rate for Ayurvedic Prep.
- 12%
- Prior Ruling
- Supreme Court ruled in favor of Dabur in 2022