MAM
Corporates welcome reduction in tax rate; positive about impacts
MUMBAI: Finance Minister Nirmala Sitharaman, on Friday, announced the slashing of corporate tax from 30 per cent to 22 per cent, sending tremors of joy and positivity across the industry. The revised tax rates will be applicable to companies that do not avail of any tax incentive. Effective corporate tax rate after surcharge will be 25.17 per cent. She also announced that new manufacturing companies will have to pay only 15 per cent corporate tax.
Welcoming the move Diageo India managing director and CEO Anand Kripalu said, “We welcome the bold changes introduced by the government, which will strengthen India Inc’s role as the nation’s job and wealth creators. The increased tax savings will boost cash flows, spur domestic and foreign investment, provide competitive tax rates and act as an economic driver towards ‘Make in India’.”
Stating that the new move will have a good impact on the travel and tourism sector, SOTC Travel vice president and chief financial officer Farroukh Kolah said, “Travel and Tourism industry is a vital contributor to the country’s growth. The announcement on lowering the corporate tax from 30 per cent to 22 per cent, which is now at par with the South Asian countries, will have a significant and positive impact on the economy. The reforms undertaken by the government will help businesses with higher post-tax profits hence incentivising investments into the country and will boost the current economic growth rate.”
Kalyan Jewellers chairman and managing director T S Kalyanaraman also praised the move as he said, “It is very positive to see the government move pragmatically and provide the much-needed liquidity boost to the economy. Lower tax rate will increase transparency in the gems and jewellery industry which will ultimately lead to a shift from unorganised to organised sector. We welcome this dynamic decision implemented by the government.”
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
