Amrutanjan Health Care Limited, one of India’s oldest and most trusted healthcare brands, has recently come under scrutiny after receiving a Goods and Services Tax (GST) demand order worth ₹1.17 crore from the tax department. The demand, issued under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017, relates to an Input Tax Credit (ITC) mismatch for the financial years 2017–18 to 2019–20.
While the figure itself may not be significant for a large organization like Amrutanjan, the issue raises important questions about how ITC mismatches occur and what businesses can do to avoid them.
According to the disclosure made by the company to the stock exchanges, the Commissioner of GST and Central Excise (Appeals I) issued a demand for ₹1,17,66,455, including applicable interest and penalties. The order was received on October 17, 2025 and stems from a discrepancy between the input tax claimed by the company and the data reflected in its GSTR-2A records.
In simple terms, the GST department believes that Amrutanjan availed more Input Tax Credit than it was eligible for, based on the supplier invoices uploaded on the government GST portal. Such mismatches are automatically detected during audits or departmental reviews.
Input Tax Credit is one of the most essential features of the GST system. It allows registered taxpayers to claim a credit for the taxes paid on purchases used to supply taxable goods or services. This mechanism prevents tax-on-tax, also known as the cascading effect of taxation.
For instance, if a business pays GST on raw materials, it can deduct that tax amount from the GST collected on final sales. The remaining amount is what the business remits to the government.
However, for ITC claims to be valid, both the supplier and buyer must comply with GST filing requirements. The supplier must file GSTR-1 correctly, and the buyer’s claim should match with GSTR-2A or GSTR-2B, which are auto-generated statements based on supplier data.
An ITC mismatch happens when the credit claimed by a taxpayer in GSTR-3B does not correspond with the data reflected in GSTR-2A/2B. This difference can arise from multiple reasons such as:
Suppliers not filing GSTR-1 on time or missing invoices.
Errors in GSTIN, invoice number, or tax amount entered by suppliers.
Duplicate or unreported invoices by either party.
Timing differences between purchase and upload of invoices.
Non-reconciliation of purchase registers before ITC claims.
Even small discrepancies can trigger automated scrutiny from GST authorities, which may result in demand orders like the one received by Amrutanjan.
In its official statement, Amrutanjan Health Care clarified that it does not agree with the order and believes the demand is unjustified. The company maintains that all ITC claims were made in accordance with GST laws and after fulfilling all necessary conditions.
It has also announced its intention to challenge the order through legal appeal, as permitted under the CGST Act. Furthermore, the company emphasized that this issue will not have any significant financial impact on its ongoing operations or profitability.
Essentially, Amrutanjan is confident that it will be able to rectify the matter through proper legal processes and ensure that its compliance record remains intact.
Founded in 1936, Amrutanjan Health Care is a Chennai-based company best known for its iconic pain balms and healthcare products. Over the decades, it has expanded its product range to include healthcare sprays, hygiene solutions, and personal care products that are marketed across India and select global markets.
The brand has earned consumer trust for its effective formulations, strong distribution network, and commitment to wellness innovation. Today, Amrutanjan stands as a heritage Indian company balancing tradition with modern healthcare needs.
The GST demand against Amrutanjan is not an isolated case — hundreds of Indian companies have faced similar issues due to ITC mismatches. This situation highlights the urgent need for businesses to strengthen their GST compliance and reconciliation processes.
Here are some key takeaways:
Businesses should reconcile their purchase data with GSTR-2B every month. This helps in early identification of mismatches before filing returns.
Suppliers play a crucial role in accurate GST reporting. Maintaining clear communication and ensuring that vendors file their GSTR-1 accurately can prevent many issues.
Using reliable GST reconciliation tools can reduce manual errors and make data verification faster and more accurate.
All invoices, debit notes, and records should be properly maintained for at least 6 years as per GST law. These serve as crucial evidence during audits.
If mismatches are found, businesses should voluntarily rectify them before departmental audits. Proactive corrections reduce the chances of penalties and interest.
Section 73 of the CGST Act deals with tax determination in cases other than fraud or willful misstatement. This means the order against Amrutanjan is considered a non-fraudulent dispute, focused purely on procedural or data discrepancies.
However, Section 73 orders often involve interest and penalties, which can still result in significant financial implications for smaller businesses. Therefore, companies must treat every notice seriously and respond within the stipulated time frame.
In recent years, tax authorities have increased their use of data analytics and AI-driven scrutiny systems to identify discrepancies in ITC claims. With the government’s push toward transparency and digital monitoring, every taxpayer — large or small — is now under closer observation.
This technological shift makes compliance even more critical. Companies must adopt real-time tracking of GST data and ensure that their accounting systems are fully integrated with the GST Network (GSTN) portal.
The ₹1.17 crore GST demand order against Amrutanjan Health Care highlights a broader compliance challenge faced by many Indian companies under the evolving GST regime. While the company has chosen to dispute and appeal the order, the case underscores the importance of accuracy, reconciliation, and vendor management in maintaining GST compliance.
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Post By : CA Madhur
Oct 21, 2025