Archive · 1 Jul 2025
Dabur Faces GST Notice Over Hajmola Classification Dispute
Imagine a company called Dabur makes a popular digestive candy called Hajmola.
The government is trying to figure out how much tax Dabur should pay on it.
They're asking if it's a candy, which has a higher tax, or a medicine, which has a lower tax.
It's like deciding if a snack or a medicine.
The tax people are investigating, and there have been arguments about this before.
Years ago, the courts said Hajmola was a medicine, like when deciding what to tax a donut as well.
This is important because it affects how much money the government gets.
DGGI issued a notice to Dabur over the classification of Hajmola, a digestive product.
The issue is whether Hajmola should be taxed as a candy (18% GST) or an Ayurvedic preparation (12% GST).
Officials confirmed the notice was issued after an investigation and a summons to Dabur.
Past rulings, including a Supreme Court decision, classified Hajmola tablets as Ayurvedic medicines.
A similar case involves MOD, a Mumbai-based chain, facing a tax notice over donut classification.
- Who
- The Directorate General of GST Intelligence (DGGI) and Dabur India are involved.
- What
- DGGI issued a show-cause notice to Dabur regarding the GST classification of Hajmola.
- When
- The notice was issued after an investigation. The article was published on July 1, 2025.
- Where
- India
- Why
- To determine the correct GST rate for Hajmola, either 18% (candy) or 12% (Ayurvedic preparation).
Tax Authorities
Dabur
GST Rate
Tax Authorities
The DGGI is questioning the classification of Hajmola and whether it should be taxed as a candy.
Dabur
Dabur likely argues that Hajmola is an Ayurvedic preparation and should be taxed at a lower rate.
- Product in Question
- Hajmola
- Taxing Authority
- DGGI
- GST Rate Candy
- 18%
- GST Rate Ayurvedic Prep
- 12%
- Related Company
- Dabur
- Previous Court Case
- Supreme Court, 2002