Dodla Dairy Wins Karnataka HC Case on GST Classification, Receives ₹1.47 Cr Refund
Dodla Dairy Limited has received a significant favorable order from the Hon'ble Karnataka High Court concerning the classification of flavored milk under GST. The company had filed a Writ Petition ch...
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Why is Dodla Dairy Limited in the news today?
Dodla Dairy Limited (DODLA) is in the news due to the company won a legal dispute regarding gst classification, leading to a lower tax rate and a significant refund, which is a positive outcome.
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Dodla Dairy Wins Karnataka HC Case on GST Classification, Receives ₹1.47 Cr Refund
December 31, 2025, 10:35 AM
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Dodla Dairy Limited has received a significant favorable order from the Hon'ble Karnataka High Court concerning the classification of flavored milk under GST.
The company had filed a Writ Petition challenging prior orders dated July 25, 2022, and April 25, 2023, which had classified flavored milk under GST Tariff Heading No. 2202 9930, attracting a higher tax rate of 6% CGST and 6% SGST (12% IGST).
The High Court has now quashed these previous orders, ruling that flavored milk correctly falls under Tariff Heading No. 0402 9990, which attracts a lower tax rate of 2.5% CGST and 2.5% SGST (5% IGST). Furthermore, the court has directed the refund of taxes paid under protest by the company, along with applicable interest, within three months of the order's receipt.
The company received this order on December 30, 2025. This ruling will lead to the reversal of a provision of ₹2.03 crore accounted for in the company's books. Additionally, Dodla Dairy will be eligible for a refund of ₹1.47 crore (taxes paid under protest) plus interest.
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