Bombay Dyeing GST demand cut to Rs 123 cr (2026)

What the company disclosed

The Bombay Dyeing and Manufacturing Company Ltd has reported that a Goods and Services Tax (GST) demand for the financial year 2019-20 has been reduced after an appeal. The company earlier disclosed a demand of Rs 188.84 crore, including interest and penalty, in August 2024. It filed an appeal within the prescribed timeline before the Joint Commissioner (Appeals). An order dated February 24, 2026 partly allowed the appeal and reduced the overall demand. The revised liability, covering IGST, CGST and SGST including interest and penalty, now stands at Rs 123.28 crore after adjustments. The company said it is considering further legal recourse.

FY25 turnover and income trend

In its financial disclosures, Bombay Dyeing reported gross turnover and other income of Rs 1,732.34 crore for the year ended March 31, 2025. This compared with Rs 1,799.42 crore in the previous year. The figures indicate a year-on-year decline in turnover and other income. Separate financial datasets in the provided material also report annual revenue of 16.05 billion rupees for FY25, which is about Rs 1,605.4 crore, with a decline of about 4.92%. Readers should note that turnover and other income figures and “revenue” figures can differ based on definitions and reporting scope.

Profit swing before tax and exceptional items

Bombay Dyeing stated that profit before tax and exceptional items was Rs 80.87 crore for FY25. This was a sharp turnaround compared with a loss of Rs 264.63 crore in the previous year on the same basis. The company also reported profit after tax of Rs 489.83 crore for FY25. This compared with a profit of Rs 2,948.42 crore in the previous year. Another dataset in the material similarly shows net profit of Rs 4,901 million, or about Rs 490.1 crore, in FY25, down 83.4% from Rs 29,486 million, or about Rs 2,948.6 crore, in FY24.

Worli land sale flagged as a key audit matter

The statutory auditor’s report highlighted the sale of land at Worli, Mumbai, as a key audit matter. The company completed the sale of a land parcel at Worli under Phase II to Goisu Realty Private Limited through execution and registration of a conveyance deed. The transaction resulted in a net gain of Rs 513.91 crore on sale of land at Worli. The auditor noted that the item is disclosed as an exceptional item in the statement of profit and loss. Given the quantum and complexity, the auditor described procedures including examining agreements for sale, the conveyance deed and board meeting notings, and reviewing the calculation of gain under relevant Ind AS requirements.

GST demand for FY2019-20: from Rs 188.84 crore to Rs 123.28 crore

The GST matter disclosed by the company relates to FY2019-20. Bombay Dyeing had earlier reported a demand of Rs 188.84 crore including interest and penalty. After the appeal was filed before the Joint Commissioner (Appeals), the authority passed an order on February 24, 2026 partly allowing the appeal. The company said the reduced demand, after adjustments, is Rs 123.28 crore including interest and penalty across IGST, CGST and SGST. Bombay Dyeing said it is evaluating further legal options, indicating the tax dispute process may not be fully closed.

Separate GST assessment order for FY2020-21

The material also refers to another GST-related order connected to FY2020-21. Bombay Dyeing said it received an order on February 28, 2025 through email from the Office of the Deputy Commissioner of State Tax, Mumbai. The referenced order is Order Ref No. ZD270225160367C dated February 8, 2025, passed by the Deputy Commissioner of State Tax, Mumbai. The disclosure states a GST demand including interest and penalty of INR 4,402,196,298 under section 73(9) of the Maharashtra Goods and Services Tax Act, 2017 and related rules. This amount is about Rs 440.22 crore when expressed in crore.

SEBI order, SAT stay, and the audit emphasis

The auditor’s report included an emphasis of matter relating to a SEBI order dated October 21, 2022. The order imposed penalties of Rs 2.25 crore on the company and restrained it from accessing the securities market for two years. As per the audit note, the company filed an appeal before the Securities Appellate Tribunal (SAT). SAT stayed the effect and operation of the SEBI order on November 10, 2022. The auditor noted that the matter has been heard and an order is reserved, and that the impact has not been reflected in the audited standalone financial statements given the uncertainty and the stay.

What auditors said about tax litigation and inventory valuation

Uncertain tax positions for direct and indirect taxes were identified as a key audit matter. The auditor stated that the company has tax matters and pending litigations involving significant judgment in deciding the accounting treatment for disputed amounts. Audit procedures described include reviewing communications with authorities, considering legal advice obtained by management, and assessing disclosures under Ind AS 37. Inventory valuation was also highlighted, spanning real estate, polyester and retail or textile inventories including raw materials, work in progress and completed real estate units. The auditor described procedures around net realisable value assumptions and controls, given judgment involved in valuation.

Why the disclosures matter for investors

The reduction in the FY2019-20 GST demand changes the quantified exposure from Rs 188.84 crore to Rs 123.28 crore, based on the company’s stated appeal outcome. At the same time, the presence of additional GST demands, including the FY2020-21 assessment demand of about Rs 440.22 crore, indicates multiple indirect tax proceedings referenced in the disclosures. Profit numbers show FY25 profitability but a steep decline in profit after tax versus FY24, alongside a sizeable exceptional gain on the Worli land sale of Rs 513.91 crore. Separately, the SEBI order and SAT stay remain an ongoing regulatory matter with an order reserved, as described by the auditor.

Key figures and dates at a glance

Conclusion

Bombay Dyeing’s latest disclosures combine an appellate relief on a FY2019-20 GST demand with a broader picture of ongoing tax and regulatory matters referenced in audited financial statements. For FY25, the company reported turnover and other income of Rs 1,732.34 crore, profit before tax and exceptional items of Rs 80.87 crore, and profit after tax of Rs 489.83 crore, alongside an exceptional gain of Rs 513.91 crore from the Worli land sale. On the indirect tax front, the company said it is considering further legal recourse despite the FY2019-20 demand being reduced to Rs 123.28 crore. Investors will likely track the next steps in the FY2019-20 matter, the FY2020-21 GST assessment demand referenced in the disclosure, and the pending SAT outcome on the SEBI order where an order is reserved.