Heritage Foods Limited — Important, 30-01-2025: General Updates

The Hon’ble Andhra Pradesh High Court has overturned a prior GST demand order related to the classification of flavored milk, originally asserting a differential tax liability of ₹3.52 Cr for the period from July 2007 to March 2020, along with a penalty. The court determined that flavored milk falls under a different tax category, with a reduced rate of 2.5% CGST and 2.5% SGST, thereby invalidating the previous demand for the additional tax and penalties. Heritage Foods is now positioned to file for a refund of the paid amount. This favorable ruling not only alleviates potential financial burdens but also strengthens the company’s operational framework. Investors should view this development positively, as it mitigates previous liabilities, potentially enhancing profitability moving forward.