MAM
No job losses yet, Parle senior category head Mayank Shah clarifies
MUMBAI: Parle Products Pvt Ltd, a leading Indian biscuit maker was in controversy because of the news spread on the layoff of over 10,000 workers due to the slowing economic growth and falling demand in the rural heartland which could cause production cuts.
Speaking with Muralidhar Swaminathan, the Channel Director of BTVI, on the job losses issue and the current scenario, Mayank Shah, Sr category Head at Parle Products shared that there’s a definite slowdown. He further highlighted that the issue of job losses has been blown out of proportion which is inappropriate. He said the consumption of a basic INR 5 packet has taken a hit due to a high GST rate which has affected the overall run.
Shah also mentioned that the sales have declined by 7-8 percent for biscuits below INR 100 per kg, which attracts 18 percent GST. He said low demand and high GST rate will eventually lead to the production slowdown and maybe job cuts. Shah said demand for the popular Parle biscuit brands such as Parle-G had been worsening since India rolled out a nationwide goods and services tax (GST) in 2017, which imposed a higher levy on biscuits costing as low as INR 5 but this shall have no impact on the employment.
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.
